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Segment
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

________________________

FORM 10-Q
________________________

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 30, 2024

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to _________
Commission file number 001-40456
________________________
JANUS INTERNATIONAL GROUP, INC.
(Exact name of registrant as specified in its charter)

________________________

Delaware
86-1476200
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
135 Janus International Blvd.
Temple, GA
30179
(Address of Principal Executive Offices)(Zip Code)
(866) 562-2580
(Registrant's telephone number, including area code)

________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class:Trading Symbol(s)Name of Each Exchange
 on Which Registered:
Common Stock, par value $0.0001 per share JBINew York Stock Exchange
________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of May 3, 2024, 145,978,142 shares of the Registrant’s common stock were outstanding.

1


JANUS INTERNATIONAL GROUP, INC.
Quarterly Report on Form 10-Q
Table of Contents
















2


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements contained in this Quarterly Report on Form 10-Q (this “Form 10-Q”) that reflect our current views with respect to future events and financial performance, business strategies, expectations for our business and any other statements of a future or forward-looking nature, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
These forward-looking statements include, but are not limited to, statements about our financial condition, results of operations, earnings outlook and prospects or regarding our or our management’s expectations, hopes, beliefs, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those contemplated in the forward-looking statements, including, without limitation, the risks set forth in Part II, Item 1A, “Risk Factors” in this Form 10-Q and in our other filings with the Securities and Exchange Commission (the “SEC”). We do not assume any obligation to update any forward-looking statements after the date of this Report, except as required by law.
In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would”, and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this Form 10-Q are based on our current expectations and beliefs concerning future developments and their potential effects on us. We cannot assure you that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Some factors that could cause actual results to differ include, but are not limited to:
changes adversely affecting the business in which we are engaged;
geopolitical risks and changes in applicable laws or regulations;
the possibility that Janus may be adversely affected by other economic, business, and/or competitive factors;
operational risk;
any failure to effectively manage, and receive anticipated returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions;
fluctuations in the demand for our products and services;
the impact of supply chain disruptions and inflation and our ability to recoup rising costs in the rates we charge to our customers;
the possibility that our long-lived assets and other assets, including inventory, property, plant, and equipment, intangibles, and investments in unconsolidated affiliates may become impaired;
our ability to maintain the listing of our securities on a national securities exchange;
the possibility of significant changes in foreign exchange rates and controls;
litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on Janus’s resources;
general economic conditions, including the capital and credit markets;
the possibility of political instability, war or acts of terrorism in any of the countries where we operate; and
other risks detailed from time to time in our filings with the SEC, press releases, and other communications, including those set forth under “Risk Factors” included in our 2023 Annual Report on Form 10-K for the year ended December 30, 2023, and in the documents incorporated by reference herein and therein.

All subsequent written and oral forward-looking statements concerning the matters addressed in this Form 10-Q and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this Form 10-Q. Except to the extent required by applicable law or regulation we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
3


PART I--FINANCIAL INFORMATION
Item 1.    Financial Statements.
Janus International Group, Inc.
Condensed Consolidated Balance Sheets
(dollar amounts in millions, except share and per share data - Unaudited)
March 30, 2024December 30, 2023
ASSETS
Current Assets
Cash $178.4 $171.7 
Accounts receivable, less allowance for credit losses of $4.1 and $3.6, at March 30, 2024 and December 30, 2023, respectively
192.0 174.1 
Contract assets35.4 49.7 
Inventories
51.1 48.4 
Prepaid expenses9.7 8.4 
Other current assets6.5 10.8 
Total current assets$473.1 $463.1 
Right-of-use assets, net49.9 50.9 
Property, plant and equipment, net
54.0 52.4 
Intangible assets, net367.7 375.3 
Goodwill368.4 368.6 
Deferred tax asset, net34.3 36.8 
Other assets2.6 2.9 
Total assets$1,350.0 $1,350.0 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable$61.1 $59.8 
Contract liabilities29.7 26.7 
Current maturities of long-term debt7.3 7.3 
Accrued expenses and other current liabilities62.1 80.3 
Total current liabilities$160.2 $174.1 
Long-term debt, net606.4 607.7 
Deferred tax liability, net1.7 1.7 
Other long-term liabilities46.3 46.9 
Total liabilities$814.6 $830.4 
STOCKHOLDERS’ EQUITY
Common Stock, 825,000,000 shares authorized, $0.0001 par value, 147,059,095 and 146,861,489 shares issued at March 30, 2024 and December 30, 2023, respectively
$ $ 
Treasury stock, at cost, 1,111,882 and 34,297 shares as of March 30, 2024 and December 30, 2023, respectively
(16.6)(0.4)
Additional paid-in capital290.9 289.0 
Accumulated other comprehensive loss(3.5)(2.9)
Retained earnings 264.6 233.9 
Total stockholders’ equity$535.4 $519.6 
Total liabilities and stockholders’ equity$1,350.0 $1,350.0 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

4


Janus International Group, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(dollar amounts in millions, except share and per share data - Unaudited)
Three Months Ended
March 30, 2024April 1, 2023
REVENUES
Product revenues$215.1 $215.4 
Service revenues39.4 36.5 
Total Revenues$254.5 $251.9 
Product cost of revenues114.7 124.4 
Service cost of revenues29.4 27.6 
Cost of Revenues$144.1 $152.0 
GROSS PROFIT$110.4 $99.9 
OPERATING EXPENSES
Selling and marketing17.6 14.8 
General and administrative37.3 34.1 
Operating Expenses$54.9 $48.9 
INCOME FROM OPERATIONS$55.5 $51.0 
Interest expense(14.4)(16.0)
Other income, net
0.1  
INCOME BEFORE TAXES$41.2 $35.0 
Provision for Income Taxes 10.5 9.0 
NET INCOME $30.7 $26.0 
Other Comprehensive (Loss) Income
$(0.6)$0.7 
COMPREHENSIVE INCOME$30.1 $26.7 
Weighted-average shares outstanding, basic and diluted (Note 13)
Basic146,604,142 146,703,894 
Diluted147,046,212 146,751,901 
Net income per share, basic and diluted (Note 13)
Basic$0.21 $0.18 
Diluted$0.21 $0.18 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements
5


Janus International Group, Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity
(dollar amounts in millions, except share data - Unaudited)
Class A Preferred Units
  (1,000,000 shares authorized
par value of .0001)
Common StockTreasury StockAdditional paid-in capitalAccumulated Other Comprehensive LossRetained EarningsTotal
SharesAmountSharesAmountSharesAmount
Balance as of
December 31, 2022
 $ 146,703,894 $  $ $281.9 $(4.8)$98.2 $375.3 
Issuance of restricted units— — 58,790 — — — — — — — 
Shares withheld for taxes upon vesting of restricted units— — (18,520)— 18,520 (0.2)— — — (0.2)
Share-based compensation— — — — — — 1.8 — — 1.8 
Foreign currency translation adjustment
— — — — — — — 0.7 — 0.7 
Net income— — — — — — — — 26.0 26.0 
Balance as of
April 1, 2023
 $ 146,744,164 $ 18,520 $(0.2)$283.7 $(4.1)$124.2 $403.6 
Class A Preferred Units
  (1,000,000 shares authorized
par value of .0001)
Common StockTreasury StockAdditional paid-in capitalAccumulated Other Comprehensive LossRetained EarningsTotal
SharesAmountSharesAmountSharesAmount
Balance as of
December 30, 2023
 $ 146,861,489$ 34,297$(0.4)$289.0 $(2.9)$233.9 $519.6 
Repurchase of common shares(1,019,889)1,019,889(15.3)(15.3)
Issuance of restricted units— — 163,309 — — — — — — — 
Shares withheld for taxes upon vesting of restricted units— — (57,696)— 57,696 (0.9)— — — (0.9)
Share-based compensation— — — — — — 1.9 — — 1.9 
Foreign currency translation adjustment
— — — — — — — (0.6)— (0.6)
Net income— — — — — — — — 30.7 30.7 
Balance as of
March 30, 2024
 $ 145,947,213 $ 1,111,882 $(16.6)$290.9 $(3.5)$264.6 $535.4 
Total shares issued are the aggregate of Common Stock outstanding and Treasury Shares.

See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements
6


Janus International Group, Inc.
Condensed Consolidated Statements of Cash Flows
(dollar amounts in millions - Unaudited)
Three Months Ended
March 30, 2024April 1, 2023
Cash Flows Provided By Operating Activities
Net income$30.7 $26.0 
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment
2.8 2.2 
Noncash lease expense
1.7 1.5 
Provision (reversal) for inventory obsolescence
0.2 (0.3)
Amortization of intangibles7.4 7.4 
Deferred income taxes
2.5  
Deferred finance fee amortization0.5 1.3 
Provision for losses on accounts receivable0.5 0.1 
Share-based compensation1.9 1.8 
Changes in operating assets and liabilities
Accounts receivable(18.4)5.8 
Contract assets14.3 (1.6)
Prepaid expenses and other current assets3.0 9.7 
Inventories(2.9)3.3 
Other assets0.3  
Accounts payable1.5 6.2 
Contract liabilities3.0 (3.3)
Accrued expenses and other current liabilities(18.9)(8.5)
Other long-term liabilities
(1.5)(1.4)
Net Cash Provided By Operating Activities
$28.6 $50.2 
Cash Flows Used In Investing Activities
Purchases of property, plant, and equipment
$(4.6)$(6.1)
Cash paid for acquisitions, net of cash acquired (1.0)
Net Cash Used In Investing Activities
$(4.6)$(7.1)
Cash Flows Used In Financing Activities
Principal payments on long-term debt$(1.6)$(52.0)
Principal payments under finance lease obligations(0.2)(0.1)
Repurchase of common shares(15.3) 
Net Cash Used In Financing Activities
$(17.1)$(52.1)
Effect of exchange rate changes on cash$(0.2)$0.2 
Net Increase (decrease) in Cash
$6.7 $(8.8)
Cash, Beginning of Period$171.7 $78.4 
Cash, End of Period$178.4 $69.6 
Supplemental Cash Flows Information
Interest paid$18.8 $14.5 
Income taxes paid$0.9 $0.2 
Cash paid for operating leases included in operating activities$2.1 $2.0 
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations$1.0 $ 
Right-of-use assets obtained in exchange for finance lease obligations$ $1.1 
RSU shares withheld included in accrued employee taxes
$0.9 $0.2 
See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements
7

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements

1.Nature of Operations
Janus International Group, Inc. is a holding company incorporated in Delaware. References to “Janus,” “Group,” “Company,” “we,” “our” or “us” refer to Janus International Group, Inc. and its consolidated subsidiaries. The Company is a global manufacturer, supplier, and provider of turn-key self-storage, commercial, and industrial building solutions. The Company provides roll up and swing doors, hallway systems, and relocatable storage “MASS” (Moveable Additional Storage Structures) units, among other solutions, and works with its customers throughout every phase of a project by providing solutions including facility planning and design, construction, technology, and the restoration, rebuilding, and replacement (“R3”) of self-storage facilities. Additionally, the Company provides facility and door automation and access control technologies.
The Company is headquartered in Temple, GA with operations in the United States of America (“United States”) (“U.S.”), United Kingdom (“U.K.”), Australia, France, and Poland. The Company provides products and services through its two operating and reportable segments which are based on the geographic region of its operations: (i) Janus North America and (ii) Janus International. The Janus International segment is comprised of Janus International Europe Holdings Ltd. (U.K.) (“JIE”), whose production and sales are largely in Europe and Australia. The Janus North America segment is comprised of all the other entities including Janus Core together with each of its operating subsidiaries, Betco, Inc. (“BETCO”), Nokē, Inc. (“NOKE”), Asta Industries, Inc. (“ASTA”), Access Control Technologies, LLC (“ACT”), U.S. Door & Building Components, LLC (“U.S. Door”), Janus Door, LLC (Janus Door”) and Steel Door Depot.com (“Steel Door Depot”), LLC. The Company’s common stock is currently traded on the New York Stock Exchange under the symbol “JBI”.
The dollar amounts in the notes are shown in millions of dollars and rounded to the nearest million, unless otherwise noted, except for share and per share amounts.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the applicable rules and regulations of the SEC. In the opinion of the Company’s management, the Unaudited Condensed Consolidated Financial Statements include all adjustments necessary for the fair presentation of the Company’s balance sheet as of March 30, 2024, and its results of operations, including its comprehensive income and stockholders’ equity for the three month periods ended March 30, 2024 and April 1, 2023. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but may not include all disclosures required by U.S. GAAP. This Quarterly Report on Form 10-Q should be read in conjunction with the Audited Consolidated Financial Statements and notes that are included in the Annual Report on Form 10-K, for the year ended December 30, 2023.
Principles of Consolidation
The Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s joint venture is accounted for under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated in consolidation.
Reclassification
Certain items have been reclassified in the prior year financial statements to conform to the presentation and classifications used in the current year. These reclassifications had no effect on our previously reported results of operations or retained earnings.

Prior Period Financial Statement Correction of Immaterial Error
Subsequent to the issuance of the fiscal year 2022 Form 10-K consolidated financial statements, an immaterial error was identified relating to certain contracts that were recognized as revenue based on two performance obligations, but it was subsequently determined that the performance obligations were not distinct within the context of the contract with the customer. The correction of this immaterial error led to a presentation change on the Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income and in Footnote 11 to the Unaudited Condensed Consolidated Financial Statements for the three month period ended April 1, 2023, as illustrated in the table below. The Company has corrected this immaterial error and prior year revenues are derived from previously issued financial statements. Accordingly, we have revised previously reported financial information for such immaterial error, as previously disclosed in our Form 10-K for the year ended December 30, 2023 and our Quarterly Reports for the three month periods ended July 1, 2023 and September 20, 2023, on Form 10-Q under the heading “Prior Period Financial Statement Correction of Immaterial Error.”A summary of revisions to certain previously reported financial information presented herein for comparative purposes. These presentation changes had no effect on our previously reported results of operations or retained earnings.




8

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements

The effect of correcting the immaterial error in the Unaudited Condensed Consolidated Financial Statement for the three month period ended April 1, 2023 is shown in the following table:

As previously reportedCorrectionAs adjusted
Condensed Consolidated Statement of Operations and Comprehensive Income
Three Months Ended April 1, 2023
Product revenues$209.7 $5.7 $215.4 
Service revenues42.2 (5.7)36.5 
$251.9 $— $251.9 
Three Months Ended April 1, 2023
Product cost of revenues$120.1 $4.3 $124.4 
Service cost of revenues31.9 (4.3)27.6 
$152.0 $— $152.0 
Footnote 11. Revenue Recognition
Reportable Segments by Timing of Revenue Recognition
Three Months Ended April 1, 2023
Janus North America
Product revenues transferred at a point in time$204.4 $(34.8)$169.6 
Product revenues transferred over time 32.9 32.9 
Services revenues transferred over time33.8 (5.8)28.0 
$238.2 $(7.7)$230.5 
Eliminations(7.9)7.7 (0.2)
$230.3 $— $230.3 
Use of Estimates in the Consolidated Financial Statements
The preparation of Unaudited Condensed Consolidated Financial Statements in conformity with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Items subject to such estimates and assumptions include, but are not limited to, income taxes and the effective tax rates, inventory basis adjustments, the fair value of assets and liabilities related to acquisitions, the derivative warrant liability, the recognition and valuation of unit-based compensation arrangements, the useful lives of property and equipment, the commencement date of leases, the incremental borrowing rate used to calculate lease liabilities, estimated progress toward completion for certain revenue contracts, allowance for credit losses, fair values and impairment of intangible assets and goodwill, and assumptions used in the accounting for business combinations.
Fair Value Measurement
The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. A three-tiered hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires that the Company use observable market data, when available, and minimize the use of unobservable inputs when determining fair value:
Level 1, observable inputs such as quoted prices in active markets;
Level 2, inputs other than the quoted prices in active markets that are observable either directly or indirectly;
Level 3, unobservable inputs in which there is little or no market data, which requires that the Company develop its own assumptions.
The fair value of cash, accounts receivable less allowance for credit losses, and accounts payable approximate the carrying amounts due to the short-term maturities of these instruments. The fair value of the Company’s debt approximates its carrying amount as of March 30, 2024 and December 30, 2023 due to its variable interest rate that is tied to the current Secured Overnight Financing Rate (“SOFR”) rate plus an applicable margin. To estimate the fair value of the Company’s debt, which consists of the First Lien Term Loan and the Revolving Credit
9

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Facility, the Company utilized fair value based risk measurements that are indirectly observable, such as credit risk that fall within Level 2 of the Fair Value hierarchy (see Notes 7 and 8 to our Unaudited Condensed Consolidated Financial Statements in this Form 10-Q for a further discussion of the Company’s debt).
Significant Accounting Policies
The Company’s significant accounting policies have not changed materially from those described in its Annual Report on Form 10-K for the fiscal year ended December 30, 2023.
Accounts Receivable and Allowance for Credit Losses
Accounts receivable primarily arise from the sale of products and services to established customers. Accounts receivable are recorded at the invoiced amount and do not bear interest. Additionally, accounts receivable are stated at estimated net realizable value, net of allowance for credit losses which is based on the Company’s assessment of the collectability of customer accounts.
The Company estimates the allowance for credit losses using the loss-rate method. As the Company determined that its customers at various business units and sales channels share similar risk characteristics, the same loss rate is applied to all accounts receivable. The Company estimates the allowance for credit losses by considering various factors such as historical write-offs, changes in customers’ credit ratings, delinquency, payment history, the age of the accounts receivable balances, and current and expected economic conditions that may affect a customer’s ability to pay. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued.
The activity for the allowance for credit losses during the three month period ended March 30, 2024 and April 1, 2023, is as follows:

Balance at December 31, 2022$4.6 
Write-offs  
Provision for expected credit losses, net
0.1 
Balance at April 1, 2023$4.7 
Balance at December 30, 2023$3.6 
Write-offs  
Provision for expected credit losses, net
0.5 
Balance at March 30, 2024$4.1 
Product Warranties
The Company records a liability for product warranties at the time of the related sale of goods. The liability is estimated using historical warranty experience, projected claim rates and expected costs per claim. The Company adjusts its liability for specific warranty matters when they become known and the exposure can be estimated. Product failure rates as well as material usage and labor costs incurred in correcting a product failure affect the Company's warranty liabilities. If actual costs differ from estimated costs, the Company must make a revision to the warranty liability. Generally, the Company offers warranties ranging between one and three years for our products with the exception of warranties for roofing at one of our business units, where we offer warranties of up to 10 years.

The activity related to product warranty liabilities recorded in Accrued expenses and other current liabilities during the three month period ended March 30, 2024 and April 1, 2023, is as follows:

Balance at December 31, 2022
$0.9 
Aggregate changes in the product warranty liability0.3
Balance at April 1, 2023
$1.2 

Balance at December 30, 2023
$2.3 
Aggregate changes in the product warranty liability0.1 
Balance at March 30, 2024
$2.4 

10

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Treasury Stock
We account for treasury stock under the cost method pursuant to the provisions of ASC 505-30, Treasury Stock. Under the cost method, the gross cost of the shares reacquired is charged to a contra equity account, treasury stock. The equity accounts that were originally credited for the original share issuance, common stock and additional paid-in capital, remain intact.
If the treasury shares are ever reissued in the future at a price higher than its cost, the difference will be recorded as a component of additional paid-in-capital in our Unaudited Condensed Consolidated Balance Sheets. When treasury stock is re-issued at a price lower than its cost, the difference will be recorded as a component of additional paid-in-capital to the extent that there are previously recorded gains to offset the losses. If there are no treasury stock gains in additional paid-in-capital, the losses upon re-issuance of treasury stock are recorded as a reduction of retained earnings in our Unaudited Condensed Consolidated Balance Sheets. If treasury stock is reissued in the future, a cost flow assumption will be adopted to compute excesses and deficiencies upon subsequent share re-issuance.
Concentrations of Risk
Financial instruments that are potentially subject to concentration of credit risk consist primarily of cash and accounts receivable. The Company maintains cash in bank deposit accounts that, at times, may exceed the insured limits of the local country. The Company has not experienced any losses in such accounts. The Company sells its products and services mainly in the United States and European regions. The Company performs ongoing evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. The Company generally does not require its customers to provide collateral or other security to support accounts receivable. As of March 30, 2024, no customer accounted for more than 10% of the accounts receivable balance or more than 10% of revenues.
Segments
The Company manages its operations through two operating and reportable segments: Janus North America and Janus International. These segments align the Company’s products and service offerings based on the geographic location between North America and International locations, which is consistent with how the Company’s Chief Operating Decision Maker (“CODM”) reviews and evaluates the Company’s operations. The CODM allocates resources and evaluates the financial performance of each operating segment. The Company’s segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. Refer to Note 15, Segments Information, for further detail.
11

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Recently Adopted Accounting Pronouncements
On January 1, 2023, the Company adopted ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which amends ASC 805, Business Combinations (Topic 805), to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require that an acquiring entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). Janus will be applying the pronouncement prospectively to business combinations occurring on or after the adoption date.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequent amendment to the initial guidance, ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. Effective April 2, 2023, the Company transitioned its credit agreements from LIBOR to the SOFR. The Company adopted this guidance prospectively on April 2, 2023, and the adoption did not have a material impact on the Consolidated Condensed Financial Statements.
Recently Issued Accounting Pronouncements
On August 23, 2023, the FASB issued ASU 2023-05, Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, under which an entity that qualifies as either a joint venture or a corporate joint venture as defined in the FASB ASC master glossary is required to apply a new basis of accounting upon the formation of the joint venture. Specifically, the ASU provides that a joint venture or a corporate joint venture (collectively, “joint ventures”) must initially measure its assets and liabilities at fair value on the formation date. The Company does not believe this will have a material impact on the Company’s consolidated financial position or results of operations.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The update will be effective for annual periods beginning after December 15, 2023. We are assessing the effect of this update on our consolidated financial statements and believe the adoption of this standard could add material additional segment disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in a public entity’s income tax rate reconciliation table and other disclosures regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. We are assessing the effect of this update on our consolidated financial statements and related disclosures.
Although there are several other new accounting pronouncements issued or proposed by the FASB, which have been adopted or will be adopted as applicable, management does not believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial position or results of operations.
12

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
3. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined using actual costs or standard costs (that approximate
actual cost) determined on a first-in, first-out basis or average cost. Labor and overhead costs associated with inventory produced by the
Company are capitalized into inventories. The major components of inventories as of March 30, 2024 and December 30, 2023 are as follows:
March 30, 2024December 30, 2023
Raw materials
$35.1 $31.0 
Work-in-process0.9 1.4 
Finished goods
15.1 16.0 
Inventories
$51.1 $48.4 
4. Property, Plant, and Equipment
Property, plant, and equipment as of March 30, 2024 and December 30, 2023 are as follows:
Useful LifeMarch 30, 2024December 30, 2023
LandIndefinite$4.5 $4.5 
Building39 years2.5 2.5 
Manufacturing machinery and equipment
3-7 years
43.2 43.5 
Leasehold improvements
Over the shorter of the lease term or respective useful life11.9 11.4 
Computer and software3 years15.2 14.5 
Furniture and fixtures, and vehicles
3-7 years
5.5 4.9 
Construction in progress
8.9 6.2 
$91.7 $87.5 
Less: accumulated depreciation
(37.7)(35.1)
$54.0 $52.4 
Depreciation expense included in cost of revenues, was approximately $1.8 and $1.7 for the three month periods ended March 30, 2024 and April 1, 2023, respectively. Depreciation expense included in operating expenses was $1.0 and $0.5 for the three month periods ended March 30, 2024 and April 1, 2023, respectively.
5. Acquired Intangible Assets and Goodwill
Intangible assets acquired in a business combination are recognized at fair value and amortized over their estimated useful lives. The carrying amount and accumulated amortization of recognized intangible assets at March 30, 2024 and December 30, 2023, are as follows:

Useful LifeMarch 30, 2024December 30, 2023
Gross Carrying AmountAccumulated AmortizationNet AmountGross Carrying AmountAccumulated AmortizationNet Amount
Customer relationships
10-15 years
$408.8 $161.0 $247.8 $409.0 $154.1 $254.9 
Tradenames and trademarks
Indefinite107.4 — 107.4 107.5 — 107.5 
Software development
10-15 years
20.3 7.9 12.4 20.3 7.5 12.8 
Noncompete agreements
3-8 years
0.3 0.2 0.1 0.3 0.2 0.1 
$536.8 $169.1 $367.7 $537.1 $161.8 $375.3 
Changes to gross carrying amount of recognized intangible assets due to translation adjustments include a loss of $0.3 and gain of $0.8 for the periods ended March 30, 2024 and December 30, 2023, respectively. The amortization of intangible assets is included in the general and administrative expense on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income. Amortization expense was approximately $7.4 for both the three month periods ended March 30, 2024 and April 1, 2023.


13

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
The changes in the carrying amounts of goodwill for the period ended March 30, 2024 were as follows:
Janus North AmericaJanus InternationalConsolidated
Balance as of December 30, 2023$357.0 $11.6 $368.6 
Foreign Currency Translation Adjustment (0.2)(0.2)
Balance as of March 30, 2024$357.0 $11.4 $368.4 
6. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities, as of March 30, 2024 and December 30, 2023 are summarized as follows:
March 30, 2024December 30, 2023
Customer deposits
$22.5 $29.6 
Employee compensation
10.7 20.2 
Interest payable8.2 13.2 
Current operating lease liabilities
5.5 5.4 
Sales tax payable
4.2 3.4 
Accrued professional fees0.9 0.7 
Product warranties
2.4 2.3 
Accrued freight
0.3 0.8 
Other liabilities
7.4 4.7 
Total$62.1 $80.3 
Other liabilities as of March 30, 2024 and December 30, 2023 consists of property tax, credit card and various other accruals.
14

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
7. Line of Credit
Amendment No. 3 to the ABL Credit and Guarantee Agreement - On April 10, 2023, the Company entered into Amendment Number Three to ABL Credit and Guarantee Agreement (the “LOC Amendment No. 3”) to that certain ABL Credit and Guarantee Agreement, dated as of February 12, 2018 (the “LOC Agreement”). The LOC Amendment No. 3, among other things, (i) replaced the interest rate based on the LIBOR and related LIBOR-based mechanics applicable to borrowings under the LOC Agreement with an interest rate based on the SOFR and related SOFR-based mechanics and (ii) updated certain other provisions of the LOC Agreement to reflect the transition from LIBOR to SOFR. The LOC Amendment provided for a revolving line of credit of $80.0 with interest payments due in arrears. The interest rate on the facility is based on a base rate, unless a SOFR Rate (as defined in the LOC Agreement) option is chosen by the Company.
2023 ABL Credit and Guarantee Agreement - On August 3, 2023, the Company refinanced the revolving credit facility, pursuant to a new ABL Credit and Guarantee Agreement (the “2023 LOC Agreement”). The 2023 LOC Agreement, among other things, (i) increased the previous aggregate commitments from $80.0 to $125.0, (ii) updated the manner in which the previous borrowing base under the 2023 LOC Agreement was determined, and (iii) replaced the administrative agent with a new administrative agent. Interest payments with respect to the 2023 LOC Agreement are due in arrears. The maturity date is August 3, 2028.
The interest rate on the facility is based on a base rate, unless an Adjusted Term SOFR Rate (as defined in the 2023 LOC Agreement) option is chosen by the Company. If the Adjusted Term SOFR Rate is elected, the interest computation is equal to the Adjusted Term SOFR Rate, which is subject to a 10 basis points flat credit spread adjustment (“CSA”) plus the SOFR Margin (as defined in the 2023 LOC Agreement) of either 1.25%, 1.50%, or 1.75%, based on excess availability (as of March 30, 2024, the SOFR Margin Rate was 1.25%). As of March 30, 2024 and December 30, 2023, the interest rate in effect for the facility was 6.6% and 6.8%, respectively. The line of credit is collateralized by accounts receivable and inventories. The Company accrues an unused commitment fee to the administrative agent at the varying rate of .25% to .38%, based on the unused portion of the maximum commitment, as defined in the 2023 LOC agreement.
The Company incurred $1.3 of debt issuance costs, which were capitalized and are being amortized over the term of the facility that expires on August 3, 2028, using the straight-line method, and are presented as part of other assets within our Unaudited Condensed Consolidated Balance Sheet. The amortization of the deferred loan costs is included in interest expense on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.
Amortization of approximately $0.1 was recognized for both the three month periods ended March 30, 2024 and April 1, 2023. The unamortized portion of the fees as of both March 30, 2024 and December 30, 2023, was approximately $1.1. There were no borrowings outstanding on the line of credit as of March 30, 2024 and December 30, 2023.
As of March 30, 2024 and December 30, 2023, the Company maintained one letter of credit totaling approximately $0.4 on which there were no balances due. The amount available on the line of credit as of both March 30, 2024 and December 30, 2023 was approximately $124.6.
15

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
8. Long-Term Debt
Long-term debt consists of the following:
March 30, 2024December 30, 2023
Note payable - Amendment No.6 First Lien
$621.9 $623.4 
Financing leases
3.2 3.4 
$625.1 $626.8 
Less: unamortized deferred finance fees
11.4 11.8 
Less: current maturities
7.3 7.3 
Total long-term debt
$606.4 $607.7 

Notes Payable - Amendment No. 5 First Lien - On June 20, 2023, the Company entered into Amendment No. 5 (the “Amendment No. 5 First Lien”) to the First Lien Credit and Guarantee Agreement, dated as of February 12, 2018 (the “First Lien Agreement”) (“First Lien Term Loan”). The Amendment No. 5 First Lien, among other things, (i) replaced the interest rate based on LIBOR and related LIBOR-based mechanics applicable to borrowings under the First Lien Agreement with an interest rate based on SOFR and related SOFR-based mechanics and (ii) updated certain other provisions of the First Lien Agreement to reflect the transition from LIBOR to SOFR. The Amendment No. 5 First Lien had an aggregate principal balance of $726.4 with interest payable in arrears. The outstanding loan balance was to be repaid on a quarterly basis of 0.28% of the original principal amount of the loans outstanding on the Fourth Amendment Effective Date (i.e., August 17, 2021) with the remaining principal due on the maturity date of February 12, 2025.
Notes Payable - Amendment No. 6 First Lien - On August 3, 2023, the Company refinanced its existing First Lien Term Loan pursuant to Amendment No. 6 (the “Amendment No. 6 First Lien”) to the First Lien Agreement. The loan was made by a syndicate of lenders, with the aggregate amount of $625.0. The outstanding loan balance is to be repaid on a quarterly basis of 0.25% of the original balance of the amended loan beginning the last business day of December 2023 with the remaining principal due on the maturity date of August 3, 2030. As chosen by the Company, the amended loan bears interest at a floating rate per annum consisting of Adjusted Term SOFR plus an applicable margin percent. As a result of a Credit rating upgrade in March 2024, the term agreement allowed the previous applicable margin rate to decrease from 3.25% to 3.00%. The interest rate on the Amendment No. 6 First Lien term loan as of March 30, 2024, was 8.37%, which is a variable rate based on Adjusted Term SOFR, subject to a 1.00% floor, and includes a 0.10% CSA and an applicable margin percentage of 3.00%.
The debt was secured by substantially all business assets. There are no prepayment penalties if the company makes voluntary prepayments on the outstanding principal balance.
In conjunction with the Amendment No 6, the Company incurred $9.5 of additional deferred finance costs, which will be amortized over the remaining term of the modified loan. Amortization of approximately $0.4 and $1.3 was recognized for the three month periods ended March 30, 2024 and April 1, 2023, respectively, as a component of interest expense. The unamortized portion of the fees as of March 30, 2024 and December 30, 2023, was approximately $11.4 and $11.8, respectively.
9. Leases
The Company primarily leases certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating leases generally have an original lease term between 1 year and 20 years, and some include options to extend (generally 5 to 10 years). Lease agreements generally do not include material variable lease payments, residual value guarantees, or restrictive covenants.
The components of right-of-use (“ROU”) assets and lease liabilities were as follows:
(in millions)Balance Sheet ClassificationMarch 30, 2024December 30, 2023
Assets:
Operating lease assetsRight-of-use assets, net$46.9 $47.6 
Finance lease assetsRight-of-use assets, net3.0 3.3 
Total leased assets$49.9 $50.9 
Liabilities:
Current:
OperatingOther accrued expenses$5.5 $5.4 
FinancingCurrent maturities of long-term debt1.0 1.0 
Noncurrent:
OperatingOther long-term liabilities$46.3 $46.9 
FinancingLong-term debt2.2 2.4 
Total lease liabilities$55.0 $55.7 
16

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
The components of lease expense were as follows:
Three Months EndedThree Months Ended
(in millions)March 30, 2024April 1, 2023
Operating lease cost$2.4 $2.2 
Variable lease cost 0.2 0.2 
Short-term lease cost0.2  
Finance lease cost:
Amortization of right-of-use assets$0.2 $0.1 
Interest on lease liabilities0.1  
Total lease cost$3.1 $2.5 
Other information related to leases was as follows:
March 30, 2024December 30, 2023
Weighted Average Remaining Lease Term (in years)
Operating Leases8.628.85
Finance Leases3.183.39
Weighted Average Discount Rate
Operating Leases7.6%7.6%
Finance Leases8.4%8.4%
As of March 30, 2024, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
(in millions)
2024$6.7 
20259.0 
20268.6 
20277.6 
20287.5 
Thereafter32.7 
Total future lease payments$72.1 
Less: imputed interest$(20.3)
Present value of future lease payments$51.8 
As of March 30, 2024, future minimum repayments of finance leases were as follows:
(in millions)
2024$0.9 
20251.2 
20260.7 
20270.5 
20280.4 
Thereafter 
Total future lease payments$3.7 
Less: imputed interest$(0.5)
Present value of future lease payments$3.2 
17

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
10. Income Taxes
The Company is taxed as a Corporation under Subchapter C, for U.S. income tax purposes and similar sections of the state income tax laws. The Company’s effective tax rate is based on pre-tax earnings, enacted U.S. statutory tax rates, non-deductible expenses, and certain tax rate differences between U.S. and foreign jurisdictions. The foreign subsidiaries file income tax returns in the United Kingdom, France, Poland, and Australia, as necessary, and are included on the U.S. tax returns as pass-through entities, with the exception of Poland, which is shown on the US tax return as a corporation and is not taxed in the US, The Company accounts for income taxes in accordance with FASB ASC 740, “Income Taxes” (“ASC 740”).” The Company determines its provision for income taxes for interim periods using an estimate of its annual effective tax rate on year to date ordinary income and records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs. The Company’s provision for income taxes consists of provisions for federal, state, and foreign income taxes. Deferred tax liabilities and assets attributable to different tax jurisdictions are not offset.
During the three month periods ended March 30, 2024 and April 1, 2023, the Company recorded a total income tax provision of approximately $10.5 and $9.0 on pre-tax income of $41.2 and $35.0 resulting in an effective tax rate of 25.5% and 25.7%, respectively. For the three month period ended March 30, 2024, effective tax rates were primarily impacted by the change in statutory rate differentials, changes in estimated state income tax and apportionment rates, and permanent differences. For the three month period ended April 1, 2023, effective rates were primarily impacted by statutory rate differentials, changes in estimated tax rates, and permanent differences.
11. Revenue Recognition
The Company accounts for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights and payment terms can be identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which it is entitled. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised good or service to a customer. The performance obligations typically have an original expected duration of one year or less.
Contract Balances
Contract assets are the rights to consideration in exchange for goods and services that the Company has transferred to a customer. Revenues in excess of billings result from revenues recognized over time. Unbilled receivables result from revenues recognized point in time and represent an unconditional right to payment for earned revenues and result from timing differences between when revenues are earned and billed for. Unbilled receivables are recognized as accounts receivable when they are billed. Contract liabilities result from revenues recognized over time and represent cash received in excess of revenue earned on active projects. Where the Company receives a down-payment from the customer, it is recorded in customer deposits within accrued expenses and other current liabilities until the project becomes active.
Contract balances as of March 30, 2024 were as follows:

Revenues in excess of billings at December 30, 2023
$17.8 
Unbilled receivables at December 30, 2023
31.9 
Contract assets at December 30, 2023
$49.7 
Revenues in excess of billings at March 30, 2024
$24.1 
Unbilled receivables at March 30, 2024
11.3 
Contract assets at March 30, 2024
$35.4 
Contract liabilities at December 30, 2023
$26.7 
Contract liabilities at March 30, 2024
$29.7 
During the three month period ended March 30, 2024, the Company recognized revenue of approximately $20.2 related to contract liabilities at December 30, 2023.
The Company derives subscription revenue from continued software support and through the Nokē Smart Entry System, a product which provides mobile access for tenants and remote monitoring and tracking for operators. We determine standalone selling price for recurring software revenue by using the adjusted market assessment approach. The recurring revenue recognized from the Nokē Smart Entry System, included in service revenues, for the three month periods ended March 30, 2024 and April 1, 2023 was $0.6 and $0.4, respectively.
18

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
Disaggregation of Revenue
The principal categories we use to disaggregate revenues are by timing and sales channel of revenue recognition. The following disaggregation of revenues depict the Company’s reportable segment revenues by timing and sales channel of revenue recognition for the three month periods ended March 30, 2024 and April 1, 2023:
Revenue by Timing of Revenue Recognition
Three Months Ended
Reportable Segments by Timing of Revenue Recognition
March 30, 2024April 1, 2023
Janus North America
Product revenues transferred at a point in time(1)
$174.2 $169.6 
Product revenues transferred over time(1)
32.7 32.9 
Service revenues transferred over time(1)
33.6 28.0 

$240.5 $230.5 
Janus International
Product revenues transferred at a point in time$8.9 $13.1 
Service revenues transferred over time5.8 8.5 
$14.7 $21.6 
Eliminations$(0.7)$(0.2)
Total Revenue
$254.5 $251.9 
(1) These numbers have been revised for the three month period ended April 1, 2023. See Note 2 to our Unaudited Condensed Consolidated Financial Statements for additional information.

Revenue by Sales Channel
Three Months Ended
Reportable Segments by Sales Channel Revenue Recognition
March 30, 2024April 1, 2023
Janus North America
Self Storage-New Construction$104.2 $64.6 
Self Storage-R368.3 82.4 
Commercial and Others68.0 83.5 

$240.5 $230.5 
Janus International
Self Storage-New Construction$12.4 $18.6 
Self Storage-R32.3 3.0 
$14.7 $21.6 
Eliminations$(0.7)$(0.2)
Total Revenue
$254.5 $251.9 
19

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
12. Equity Compensation
2021 Omnibus Incentive Plan
The Company maintains its 2021 Omnibus Incentive Plan (the “Plan”) under which it grants share-based awards to eligible directors, officers and employees in order to attract, retain and reward such individuals and strengthen the mutuality of interest between such individuals and the Company’s stockholders. The Plan allows the Company to issue and grant 15,125,000 shares.
The Company measures compensation expense for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”). During the three month period ended March 30, 2024, the Company granted share-based awards including restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”) under the Plan. The grant date fair value of RSUs is equal to the closing price of the Company’s common stock on either: (i) the date of grant; or (ii) the previous trading day, depending on the level of administration required. Forfeitures are recognized as they occur, any unvested RSUs or stock options are forfeited upon a “Termination of Service,” as defined in the Plan, or as otherwise provided in the applicable award agreement or determined by the Company’s Compensation Committee of the Board of Directors. In connection with the equity awards, the share-based compensation expense was $1.9 and $1.8, respectively, and the income tax benefit from share-based compensation was $0.4 for both the three month periods ended March 30, 2024 and April 1, 2023.
Restricted Stock Unit Grants
RSUs are subject to a vesting period between one and four years. RSU activity for the three month period ended March 30, 2024 is as follows:
(dollar amounts in millions, except share and per share data)
RSUs
Weighted-Average Grant Date Fair Value
Unvested, outstanding at December 30, 2023
944,810 $10.6 
Granted804,131 14.8 
Vested(163,309)10.6 
Forfeited(10,834)10.7 
Unvested, outstanding at March 30, 2024
1,574,798 $12.8 
Share-based compensation expense for RSUs is recognized straight line over the respective vesting period, reduced for actual forfeitures, and included in general and administrative expense in the accompanying Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income. Total compensation expense related to the above awards was approximately $1.2 and $0.6 for the three month periods ended March 30, 2024 and April 1, 2023, respectively. As of March 30, 2024, there was an aggregate of $18.4 of unrecognized expense related to the RSUs granted, which the Company expects to amortize over a weighted-average period of 2.6 years.
Performance-based Restricted Stock Unit Grants
PSU awards are based on the satisfaction of the Company’s three-year cumulative adjusted EBITDA. The number of PSUs that become earned can range between 0% and 200% of the original target number of PSUs. PSUs are subject to a three-year performance cliff-vesting period.
PSUs activity for the three month period ended March 30, 2024 is as follows:
(dollar amounts in millions, except share and per share data)
PSUsWeighted-Average Grant Date Fair Value
Unvested, outstanding at December 30, 2023
482,014 $10.0 
Granted 225,959 14.8 
Vested  
Forfeited(14,217)10.6 
Unvested, outstanding at March 30, 2024 (1)
693,756 $11.6 
1) This number excludes 252,923 performance stock units, which represents the incremental number of units that would be issued based on performance results from previously-granted PSU awards.
Share-based compensation expense for PSUs is recognized straight line over the requisite vesting period, reduced for actual forfeitures, and included in general and administrative expense in the accompanying Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income. Total compensation expense related to the PSUs was approximately $0.5 and $1.0 for the three month periods ended
20

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
March 30, 2024 and April 1, 2023, respectively. As of March 30, 2024, there was an aggregate of $5.8 of unrecognized expense related to the PSUs granted, which the Company expects to amortize over a weighted-average period of 2.3 years.     
The above table represents PSUs assuming 100% of target payout at the time of the grant. The actual payout of the 2022 grants will be in a range of 0% to 200%, depending on performance results for the three-year performance period from January 2, 2022, through December 28, 2024. As of March 30, 2024, the Company deemed the estimate of the PSUs granted in fiscal year ended December 31, 2022 to be issued at 200% of target, and have reflected such estimates within the share-based compensation expense.
The actual payout of the 2023 grants will be in a range of 0% to 200%, depending on performance results for the three-year performance period from January 1, 2023, through December 27, 2025. As of March 30, 2024, the Company deemed the estimate of the PSUs granted in the three month periods ended March 30, 2024 to be issued at 100% of target, and have reflected such estimates within the share-based compensation expense.
The actual payout of the 2024 grants will be in a range of 0% to 200%, depending on performance results for the three-year performance period from January 1, 2024, through December 26, 2026. As of March 30, 2024, the Company deemed the estimate of the PSUs granted in the three month period ended March 30, 2024 to be issued at 100% of target, and have reflected such estimates within the share-based compensation expense.
Stock Options
Stock options are granted by applying a Black-Scholes valuation model to determine the fair value on the grant date. Stock options are subject to a vesting period of either three or four years. Stock option awards typically vest in 33% or 25% annual installments on each annual anniversary of the vesting commencement date for the duration of the vesting period, and expire ten years from the grant date.
The principal assumptions utilized in valuing stock options include, the expected option life, the risk-free interest rate (an estimate based on the yield of United States Treasury zero coupon with a maturity equal to the expected life of the option), the expected stock price volatility using the historical and implied price volatility, and the expected dividend yield.
Stock option activity for the three month period ended March 30, 2024 is as follows:
(dollar amounts in millions, except share and per share data)Stock OptionsWeighted-Average Grant Date Fair ValueWeighted-Average Exercise Price, per shareWeighted Average Remaining Contractual Life (in years)
Aggregate Intrinsic Value
Unvested, outstanding at December 30, 2023
544,350 $4.5 $9.4 8.4$2.0 
Granted   — — 
Exercised    — — 
Vested   — — 
Forfeited(18,796)5.3 10.6 9.00.1 
Unvested, outstanding at March 30, 2024
525,554 $4.5 $9.4 8.1$3.1 
Vested not exercised at March 30, 2024
175,175 $4.5 $9.4 8.1$1.0 
Share-based compensation expense for stock options is recognized straight line over the respective vesting period, reduced for actual forfeitures, and included in general and administrative expense in the accompanying Unaudited Condensed Consolidated Statement of Operations and Comprehensive Income. Total compensation expense related to stock options was approximately $0.2 for both of the three month periods ended March 30, 2024 and April 1, 2023. Total unamortized share-based compensation expense related to the unvested stock options as of March 30, 2024, was approximately $1.7, which the Company expects to amortize over a weighted-average period of 2.1 years.
21

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
13. Net Income Per Share
Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. For the three month periods ended March 30, 2024 and April 1, 2023, dilutive potential common shares include stock options and unvested restricted stock units. Dilutive earnings per share (“EPS”) excludes all common shares if their effect is anti-dilutive.
The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the three month periods ended March 30, 2024 and April 1, 2023:
Three Months Ended
 (in millions, except share and per share data)
March 30, 2024April 1, 2023
Numerator:
Net income attributable to common stockholders$30.7 $26.0 
Denominator:
Weighted average number of shares:
Basic146,604,142 146,703,894 
Adjustment for dilutive securities442,070 48,007 
Diluted147,046,212 146,751,901 
Basic net income per share attributable to common stockholders$0.21 $0.18 
Diluted net income per share attributable to common stockholders$0.21 $0.18 
14. Share Repurchase Program
On February 28, 2024, the Company announced that the Board of Directors authorized a share repurchase program, pursuant to which the Company is authorized to purchase up to $100 million of its common stock. The repurchase authorization does not have an expiration date and may be terminated by the Company’s Board of Directors at any time. As of March 30, 2024, $84.9 is remaining under the share repurchase program. There was no repurchase program in place in the three month period ended April 1, 2023.

The Inflation Reduction Act of 2022 imposes a 1% excise tax on share repurchases in excess of issuances, which is effective for Janus for
repurchases completed after December 31, 2022. We reflect the excise tax within equity as part of the repurchase of the common stock.

The following table presents the share repurchase activity for the three month period ended March 30, 2024:

 (in millions, except share and per share data)
Three Months Ended
March 30, 2024
Number of shares repurchased1,019,889
Share repurchase cost (including excise taxes)$15.3 


22

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
15. Segments Information
The Company operates its business and reports its results through two reportable segments: Janus North America and Janus International, in accordance with ASC Topic 280, Segment Reporting. The Janus International segment is comprised of JIE, with its production and sales located largely in Europe. The Janus North America segment is comprised of all the other entities including Janus Core, BETCO, NOKE, ASTA, DBCI, ACT, Janus Door, U.S. Door, and Steel Door Depot.

Summarized financial information for the Company’s segments is shown in the following tables:
(dollar amounts in tables in millions)
Three Months Ended
March 30, 2024April 1, 2023
Revenue
Janus North America$240.5 $230.5 
Janus International14.7 21.6 
Intersegment eliminations(0.7)(0.2)
Consolidated Revenue$254.5 $251.9 
Income (Loss) From Operations
Janus North America$56.2 $48.7 
Janus International(0.7)2.3 
Total Segment Operating Income$55.5 $51.0 
Depreciation Expense
Janus North America$2.5 $2.0 
Janus International0.3 0.2 
Consolidated Depreciation Expense$2.8 $2.2 
Amortization of Intangible Assets
Janus North America$7.1 $7.1 
Janus International0.3 0.3 
Consolidated Amortization Expense$7.4 $7.4 
Purchases of property, plant, and equipment
Janus North America$3.6 $5.2 
Janus International1.0 0.9 
Consolidated purchases of property, plant, and equipment
$4.6 $6.1 
March 30, 2024December 30, 2023
Property, Plant, and Equipment, Net
Janus North America$47.3 $46.3 
Janus International6.76.1
Consolidated Property, Plant, and Equipment, Net
$54.0 $52.4 
Identifiable Assets
Janus North America$1,332.7 $1,328.7 
Janus International67.4 70.0 
Intersegment Eliminations(50.1)(48.7)
Consolidated Assets$1,350.0 $1,350.0 
Assets held at foreign locations were approximately $68.5 and $70.5 as of March 30, 2024 and December 30, 2023, respectively. Revenues earned at foreign locations totaled approximately $14.7 and $21.6 for the three month periods ended March 30, 2024 and April 1, 2023, respectively.
23

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
16. Restructuring
The Company initiated a restructuring plan in 2023 to relocate two of its facilities and align its ongoing corporate strategy. In addition, the Company incurred costs associated with restructuring initiatives intended to improve operating performance, profitability and efficiency of business processes. Restructuring charges can include severance costs, relocations costs, recruiting fees affiliated with hiring new personnel, legal costs, and contract cancellation costs.

The Company records restructuring charges when they are probable and estimable. Restructuring costs are accrued when the Company announces the closure or restructuring event, and the amounts can be reasonably estimated. Restructuring costs are included in general and administrative expenses on the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.

The Company’s restructuring expenses are comprised of the following:

(dollar amounts in tables in millions)
Three Months Ended
March 30, 2024April 1, 2023
Severance and termination benefits$0.4 $0.1 
Legal, consulting, and other costs 0.5 
Total Restructuring Charges$0.4 $0.6 

The following table summarizes the changes in the Company’s accrued restructuring balance, which are included in accrued expenses and other current liabilities in the accompanying Condensed Consolidated Balance Sheets.
Balance at December 31, 2022
$ 
Restructuring charges0.6 
Payments(0.5)
Balance at April 1, 2023
$0.1 
Balance at December 30, 2023
$ 
Restructuring charges0.4 
Payments 
Balance at March 30, 2024
$0.4 
17. Commitments and Contingencies
Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Those matters include the following:
General Litigation
The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.
Self-Insurance
Under the Company’s workers’ compensation insurance program, coverage is obtained for catastrophic exposures under which the Company retains a portion of certain expected losses. The Company has stop loss workers’ compensation insurance for claims in excess of $0.2 as of both March 30, 2024 and December 30, 2023. Provision for losses expected under this program is recorded based upon the Company’s estimates of the aggregate liability for claims incurred and totaled approximately $0.2 and $0.5 as of March 30, 2024 and December 30, 2023, respectively. The amount of actual losses incurred could differ materially from the estimates reflected in these Unaudited Condensed Consolidated Financial Statements.
Under the Company’s health insurance program, coverage is obtained for catastrophic exposures under which the Company retains a portion of certain expected losses. The Company has stop loss insurance for claims in excess of $0.3 as of both March 30, 2024 and December 30, 2023. Provision for losses expected under this program is recorded based upon the Company’s estimates of the aggregate liability for claims incurred and totaled approximately $2.1 and $2.4 as of March 30, 2024 and December 30, 2023, respectively. The amount of actual losses incurred could differ materially from the estimates reflected in these Unaudited Condensed Consolidated Financial Statements.
24

Janus International Group, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
18. Related Party Transactions
For the three month periods ended March 30, 2024 and April 1, 2023, there were no material related party transactions.
19. Subsequent Events
For the interim Unaudited Condensed Consolidated Financial Statements as of March 30, 2024, the Company has evaluated subsequent events through the issuance date of the financial statements.
On April 18, 2024, the Company made a voluntary prepayment of $21.9 toward the certain First Lien Credit and Guarantee Agreement, dated as of February 12, 2018 (as amended to date, the “First Lien Term Loan”). The Company used cash on hand to make the voluntary prepayment.
On April 30, 2024, the Company completed a repricing pursuant to Amendment No. 7 (the “Repricing Amendment”) to that certain First Lien Term Loan, The Repricing Amendment reduced the applicable interest rate margins on the $600.0 First Lien’s Term Loan by 0.5% to 1.50%, for the term loans bearing interest at rates based on the base rate, and to 2.50%, for the term loans bearing interest at rates based on the secured overnight financing rate. The company uses the secured overnight financing rate. In addition to the change in the applicable margin rate, the Company is no longer subject to a CSA rate of 0.1%.






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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

JANUS’S MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis provides information which Janus’s management believes is relevant to an assessment and understanding of consolidated results of operations and financial condition. You should read the following discussion and analysis of Janus’s financial condition and results of operations in conjunction with the Unaudited Condensed Consolidated financial statements and notes thereto contained in this quarterly report on Form 10-Q (the “Form 10-Q”) and the consolidated financial statements and notes
thereto contained in Janus’s annual report on Form 10-K for the year ended December 30, 2023.
Certain information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, including information with respect to plans and strategy for Janus’s business, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the section entitled “Risk Factors,” Janus’s actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Factors that could cause or contribute to such differences include, but are not limited to, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this Form 10-Q. We assume no obligation to update any of these forward- looking statements.
Unless otherwise indicated or the context otherwise requires, references in this Janus’s Management’s Discussion and Analysis of Financial Condition and Results of Operations section to “Janus,” “we,” “us,” “our,” and other similar terms refer to Janus International Group Inc. (Parent) and its consolidated subsidiaries.
Percentage amounts included in this Form 10-Q have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this Form 10-Q may vary from those obtained by performing the same calculations using the figures in our Unaudited Condensed Consolidated Financial Statements included elsewhere in this Form 10-Q. Certain other amounts that appear in this Form 10-Q may not sum due to rounding.
Dollar amounts are shown in millions of dollars, unless otherwise noted, and rounded to the nearest million except for share
and per share amounts.
Introduction
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is a supplement to the accompanying Unaudited Condensed Consolidated Financial Statements, and provides additional information on our business, recent developments, financial condition, liquidity and capital resources, cash flows and results of operations. MD&A is organized as follows:
Business Overview: This section provides a general description of our business, and a discussion of management’s general outlook regarding market demand, our competitive position and product innovation, as well as recent developments that we believe are important to understanding our results of operations and financial condition or in understanding anticipated future trends.
Basis of Presentation: This section provides a discussion of the basis on which our Unaudited Condensed Consolidated Financial Statements were prepared.
Results of Operations: This section provides an analysis of our unaudited results of operations for the three month periods ended March 30, 2024 and April 1, 2023.
Liquidity and Capital Resources: This section provides a discussion of our financial condition and an analysis of our unaudited cash flows for the three month periods ended March 30, 2024 and April 1, 2023. This section also provides a discussion of our contractual obligations, other purchase commitments and customer credit risk that existed at March 30, 2024, as well as a discussion of our ability to fund our future commitments and ongoing operating activities through internal and external sources of capital.
Critical Accounting Estimates: This section identifies and summarizes those accounting estimates that significantly impact our reported results of operations and financial condition and require significant judgment or estimates on the part of management in their application.
Business Overview
Janus is a global manufacturer and supplier of turn-key self-storage, commercial and industrial building solutions including: roll up and swing doors, hallway systems, relocatable storage units, and facility and door automation technologies with manufacturing operations in Georgia, Texas, Arizona, Indiana, North Carolina, Poland, United Kingdom, and Australia. The self-storage industry is comprised of institutional and non-institutional facilities. Institutional facilities typically include multi-story, climate controlled facilities located in prime locations owned
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and/or managed by large Real Estate Investment Trusts (“REITs”) or returns-driven operators of scale and are primarily located in the top 50 U.S. metropolitan statistical areas (“MSAs”), whereas the vast majority of non-institutional facilities are single-story, non-climate controlled facilities located outside of city centers owned and/or managed by smaller private operators that are mostly located outside of the top 50 U.S. MSAs. Janus is highly integrated with customers at every phase of a project, including facility planning/design, construction, access control and restore, rebuild, replace (R3) of self-storage facilities.
Our business is operated through two geographic regions that comprise our two reportable segments: Janus North America and Janus International. The Janus International segment is comprised of JIEH, whose production and sales are largely in Europe and Australia. The Janus North America segment is comprised of all the other entities including Janus International Group, LLC (together with each of its operating subsidiaries, “Janus Core”), Betco, Inc. (“BETCO”), Noke, Inc. (“NOKE”), Asta Industries, Inc. (“ASTA”), Access Control Technologies, LLC (“ACT”), U.S. Door & Building Components, LLC (“U.S. Door”), Janus Door, LLC (“Janus Door”), and Steel Door Depot.com, LLC (“Steel Door Depot”).
Furthermore, our business is comprised of three primary sales channels: New Construction-Self-storage, R3-Self-storage (R3), and Commercial and Other. The Commercial and Other category is primarily comprised of roll-up sheet and rolling steel door sales into the commercial marketplace.
New construction consists of engineering and project management work pertaining to the design, building, and logistics of a greenfield new self-storage facility tailored to customer specifications while being compliant with ADA regulations. Any Nokē Smart Entry System revenue associated with a new construction project also rolls up into this sales channel.
The concept of Janus R3 is to remodel self-storage facilities including storage unit doors, hallways, ceilings, offices, optimizing unit mix and utilizing vacant land for movable storage units (JBI MASS relocatable storage units), and adding a more robust security solution to enable customers to (1) charge higher rental rates and (2) compete with modern self-storage facilities and large operators. In addition, the R3 sales channel includes new self-storage capacity being brought online through conversions and expansions. R3 transforms facilities through door replacement, facility upgrades, Nokē Smart Entry Systems, and relocatable storage MASS (Moveable Additional Storage Structure).
Commercial light duty steel roll-up doors are designed for applications that require less frequent and less demanding operations. Janus offers heavy duty commercial grade steel doors (minimized dead-load, or constant weight of the curtain itself) perfect for warehouses, commercial buildings, and terminals, designed with a higher gauge and deeper guides, which combat the heavy scale of use with superior strength and durability. Janus also offers rolling steel doors known for minimal maintenance and easy installation with, but not limited to, the following options for: commercial slat doors, heavy duty service doors, fire doors, fire rated counter shutters, insulated service doors, counter shutters and grilles.
Executive Overview
Janus’s financials reflect the result of the execution of our operational and corporate strategy to penetrate the self-storage, commercial and industrial storage markets, as well as capitalizing on the aging self-storage facilities, while continuing to diversify our products and solutions. Janus is a bespoke provider of products and solutions for our clients.
Revenues increased to $254.5 for the period ending March 30, 2024 compared to $251.9 for the period ending April 1, 2023.

Net income increased to $30.7 for the period ending March 30, 2024, compared to $26.0 for the period ending April 1, 2023.

Adjusted EBITDA grew to $66.3 for the period ending March 30, 2024 compared to $61.2 for the period ending April 1, 2023.

Cash flows from operations of $28.6 and $24.0 free cash flows were generated for the period ending March 30, 2024 compared to $50.3 and $44.2 cash flows from operations and free cash flows for the period ending April 1, 2023.

Common stock worth $15.3 was repurchased, which was 1.02 million shares as part of our previously announced $100.0 share buy-back program.

Long-Term Debt to Net Income ratio decreased to 4.4x for the period ending March 30, 2024, from 4.6x as of December 30, 2023, Net leverage ratio decreased to 1.5x for the period ending March 30, 2024, down from 1.6x as of December 30, 2023.

Information regarding use of Adjusted EBITDA, Free Cash Flow, and Net Leverage Ratio non-GAAP measures, and a reconciliation to the most comparable GAAP measure, are included in “Non-GAAP Financial Measures.”
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Business Segment Information
Our business is operated through two geographic regions that comprise our two reportable segments: Janus North America and Janus International.
Janus North America produces and provides various fabricated components such as commercial and self-storage doors, walls, hallway systems, metal roof panels, metal wall panels and building components used primarily by owners or builders of self-storage facilities. Installation services are also provided along with the products. Janus also provides industrial building solutions. Janus North America represents approximately 90% - 95% of the Company’s revenue.
The Janus International segment, whose production and sales are largely in Europe and Australia, produces and provides similar products and services as Janus North America, with the exception of the fact that the international segment does not sell into the Commercial sales channel. Janus International represents approximately 5% - 10% of Janus’s revenue.
Key Performance Measures
Management evaluates the performance of its reportable segments based on the revenue of services and products, gross profit, operating margins, and cash from business operations. We use Adjusted EBITDA, which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends. Please see the section “Non-GAAP Financial Measure” below for further discussion of this financial measure, including the reasons why we use such financial measures and reconciliations of such financial measures to the nearest GAAP financial measures.
Human capital is also one of the main cost drivers of the manufacturing, selling, and administrative processes of Janus. As a result, headcount reflect Janus’s operational status, indicating whether the business is expanding or contracting. We expect a continued rise in our workforce as we expand our operations. Additionally, we foresee the need to hire additional software personnel as we continue to expand the software accessibility component of our business. As of March 30, 2024, and April 1, 2023, the headcount was 2,382 employees (including 424 temporary employees) and 2,301 employees (including 518 temporary employees), respectively.
The following table sets forth key performance measures for the three month periods ended March 30, 2024 and April 1, 2023:

(dollar amounts in tables in millions)
Three Months EndedVariance
March 30, 2024April 1, 2023
$
%
Total Revenue
$254.5 $251.9 $2.6 1.0 %
Adjusted EBITDA
$66.3 $61.2 $5.1 8.3 %
Adjusted EBITDA (% of revenue)
26.1 %24.3 %1.8 %


Total revenue increased by $2.6 or 1.0% for the three month period ended March 30, 2024 compared to the three month period ended April 1, 2023, primarily due to improved market conditions, product mix, and commercial actions.
Adjusted EBITDA increased by $5.1 or 8.3% from the three month period ended March 30, 2024 compared to the three month period ended April 1, 2023, primarily due to increased revenue and decrease in cost of revenues, which increased the gross margin, and was partially offset by increased operating expenses.

Adjusted EBITDA as a percentage of revenue increased 180bps for the three month period ended March 30, 2024 primarily due to increased revenue, segment mix and the benefit of decreases in raw material costs, which was partially offset by increases in operating expenses as the business scales for continued growth. (See Non-GAAP Financial Measures” section).
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Basis of Presentation
The Unaudited Condensed Consolidated Financial Statements have been derived from the accounts of Janus and its wholly owned subsidiaries. Janus’s fiscal year follows a 4-4-5 calendar which divides a year into four quarters of 13 weeks, grouped into two 4-week “months” and one 5-week “month.” As a result, some monthly comparisons are not comparable as one month is longer than the other two. The major advantage of a 4-4-5 calendar is that the end date of the period is always the same day of the week, making manufacturing planning easier as every period is the same length. Every fifth or sixth year will require a 53rd week.
We have presented results of operations, including the related discussion and analysis for:
The thirteen week period ended March 30, 2024 compared to the thirteen week period ended April 1, 2023.
Components of Results of Operations
Product Revenues. Product revenues represent the revenue from the sale of products, including steel roll-up and swing doors, rolling steel doors, steel structures, as well as hallway systems and facility and door automation technologies for commercial and self-storage customers. Product revenue is recognized upon transfer of control to the customer, which generally takes place at the point of destination. Product revenues also include all revenues affiliated with erecting a self storage facility for our customers, which is recognized over-time, over the life of the contract. We expect our product revenue may vary from period to period based on, among other things, the timing and size of orders and delivery of products and the impact of significant transactions. Revenues are monitored and analyzed as a function of sales reporting within the following sales channels; New Construction, R3, and Commercial and Other.
Service Revenues. Service revenues reflect installation services to customers for steel facilities, steel roll-up and swing doors, hallway systems, and relocatable storage units which is recognized over time based on the satisfaction of our performance obligation. Janus is highly integrated with customers at every phase of a project, including facility planning/design, construction, access control and R3 of damaged, or end-of-life products or rebranding of facilities due to market consolidation. Service obligations are primarily short term and completed within a one-year time period. We expect our service revenue to increase as we add new customers and our existing customers continue to add more and more content per square foot.
Product Cost of Revenues. Product costs of revenues includes the manufacturing cost of our steel roll-up and swing doors, rolling steel doors, steel structures, and hallway systems which primarily consists of amounts paid to our third-party contract suppliers and personnel-related costs directly associated with manufacturing operations as well as overhead and indirect costs. Our product cost of revenues includes warranty costs, excess and obsolete inventory charges, shipping costs, cost of spare or replacement parts, and an allocated portion of overhead costs, including depreciation. Product costs of revenues also include all costs affiliated with erecting a self storage facility for our customers. We expect our product cost of revenues to increase as our product revenues grow.
Service Cost of Revenues. Cost of services includes third-party installation subcontractor costs directly associated with the installation of our products. We expect our service cost of revenues to increase as our service revenues grow.
Selling and Marketing Expense. Selling expenses consist primarily of compensation and benefits of employees engaged in selling activities as well as related travel, advertising, and trade shows/conventions. We expect selling expenses to increase in absolute dollars in future periods as we expect our revenues to continue to grow.
General and Administrative Expense. General and administrative (“G&A”) expenses are comprised primarily of expenses relating to back office employee compensation and benefits, travel, meals, and entertainment expenses as well as depreciation, amortization, and non-recurring costs. We expect general and administrative expenses to increase in absolute dollars in future periods as we expect our revenues to continue to grow.
Interest Expense. Consists of interest expense on short-term and long-term debt and amortization on deferred financing fees (see “Long-Term Debt” section).
Factors Affecting the Results of Operations
Key Factors Affecting the Business and Financial Statements
Janus’s management believes our performance and future growth depends on a number of factors that present significant opportunities but also pose risks and challenges.
Factors Affecting Revenues
Janus’s revenues from products sold are driven by economic conditions, which impacts new construction of self-storage facilities, R3 of self-storage facilities, and commercial revenue.
Janus periodically modifies sales prices of its products due to changes in costs for raw materials and energy, market conditions, labor and logistics costs and the competitive environment. In certain cases, realized price increases are less than the announced price increases due to project pricing, competitive reactions and changing market conditions.
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Janus also offers a wide assortment of products that are differentiated by style, design, and performance attributes. Pricing and margins for products within the assortment vary. In addition, changes in the relative quantity of products purchased at different price points can impact year-to-year comparisons of net sales and operating income.
Service revenue is driven by the product revenue and the increase in value-added services, such as installation and general contracting, project management, and third-party security. Janus differentiates itself through on-time delivery, efficient installation, customer service satisfaction, and a reputation for high quality products.
Factors Affecting Growth Through Acquisitions
Janus’s business strategy includes growth through, the acquisition of other companies, which yielded our acceptable internal rate of return. Janus evaluates companies that it believes will strategically fit into its business and growth objectives, including those that will support its overall strategy of portfolio diversification, geographic expansion, and technological innovation, among other areas of focus. While Janus seeks acquisition opportunities that it believes will augment its business and growth objectives, certain factors could prevent acquisition opportunities from materializing, including target-company availability, relative valuation expectations, and certain due diligence considerations, among other factors.
Seasonality
Generally, Janus’s sales tend to be the slowest in the first and fourth quarters due to more unfavorable weather conditions, customer business cycles, and the timing of renovation and new construction project launches.
Factors Affecting Operating Costs
Janus’s operating expenses are comprised of direct production costs (principally raw materials, labor, and energy), manufacturing overhead costs, freight, costs to purchase sourced products, selling and marketing, and general and administrative expenses.
Janus’s largest individual raw material expenditure is steel coils. Fluctuations in the prices of steel coil are generally beyond Janus’s control and have a direct impact on the financial results. Janus enters into agreements with large suppliers in order to lock in steel coil prices for part of Janus’s production needs. These agreements are renewed annually and partially mitigate the potential impacts of short-term steel coil price fluctuations. These arrangements allow Janus to purchase quantities of product within specified ranges as outlined in the contracts.
Outbound freight costs are driven by Janus’s volume of product revenues and are subject to the freight market pricing environment.
Results of Operations - Consolidated
The period to period comparisons of our results of operations have been prepared using the historical periods included in our Unaudited Condensed Consolidated Financial Statements. The following discussion should be read in conjunction with the Unaudited Condensed Consolidated Financial Statements and related notes included elsewhere in this document. The following tables set forth our results of operations for the periods presented in dollars and as a percentage of total revenue.

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Results of Operations
For the three month period ended March 30, 2024 compared to the three month period ended April 1, 2023:
(dollar amounts in tables in millions)
Three Months EndedVariance
March 30, 2024
April 1, 2023
$%
REVENUES
Product revenues(1)
$215.1 $215.4 $(0.3)(0.1)%
Service revenues(1)
39.4 36.5 2.9 7.9 %
Total Revenues$254.5 $251.9 $2.6 1.0 %
Product cost of revenues114.7 124.4 (9.7)(7.8)%
Service cost of revenues29.4 27.6 1.8 6.5 %
Cost of Revenues$144.1 $152.0 $(7.9)(5.2)%
GROSS PROFIT$110.4 $99.9 $10.5 10.5 %
OPERATING EXPENSES
Selling and marketing17.6 14.8 2.8 18.9 %
General and administrative37.3 34.1 3.2 9.4 %
Operating Expenses$54.9 $48.9 $6.0 12.3 %
INCOME FROM OPERATIONS$55.5 $51.0 $4.5 8.8 %
Interest expense(14.4)(16.0)1.6 (10.0)%
Other income
0.1 — 0.1 100.0 %
INCOME BEFORE TAXES$41.2 $35.0 $6.2 17.7 %
Provision for Income Taxes10.5 9.0 1.5 16.7 %
NET INCOME$30.7 $26.0 $4.7 18.1 %
(1) These numbers have been revised for the three month period ended April 1, 2023. See Note 2 to our Unaudited Condensed Consolidated Financial Statements for additional information.
Revenues
 (Dollar amounts in tables in millions)
Three Months EndedVariance
March 30, 2024April 1, 2023
$

%
Product revenues (1)
$215.1 $215.4 $(0.3)(0.1)%
Service revenues
39.4 36.5 2.9 7.9 %
Total$254.5 $251.9 $2.6 1.0 %
(1) Product revenues include product revenues transferred at a point in time and product revenues transferred over time.
The $2.6 revenue increase for the three month period ended March 30, 2024 compared to the three month period ended April 1, 2023 is due to growth in the self storage sales channel, and is primarily attributable to an increase in volume.

The following table and discussion compares Janus’s sales by sales channel:.

(dollar amounts in tables in millions)
Three Months Ended
Variance
Consolidated
March 30, 2024
% of sales
April 1, 2023
% of sales
$
%
New Construction - Self Storage
$116.5 45.8 %$83.1 33.0 %$33.4 40.2 %
R3 - Self Storage
70.7 27.8 %85.5