Fri, Jun 14, 12:00 PM (85 days ago)
The AZEK Company Inc. filed an amendment to its quarterly report for the period ending December 31, 2023, restating financial statements due to inventory overstatement and cost of sales understatement. Key changes include: 1. **Restated Financials**: Adjustments were made to correct inventory values and cost of sales, impacting net income and other financial metrics for the quarters ended December 31, 2023, and 2022. 2. **Financial Performance**: - **Net Sales**: Increased by 11.2% YoY to $240.4 million. - **Gross Profit**: Improved significantly to $90.7 million from $42.2 million. - **Net Income**: Turned positive to $25.1 million from a loss of $29.7 million. - **Adjusted EBITDA**: Rose to $54.9 million from $8.9 million. 3. **Segment Results**: - **Residential**: Sales up 24.2%, Adjusted EBITDA up 1284.6%. - **Commercial**: Sales down 52.6% due to Vycom business divestiture. 4. **Cash Flow**: Operating cash flow decreased to $(16.3) million, investing activities generated $115.5 million from Vycom sale, and financing activities used $102.8 million mainly for share repurchases. 5. **Internal Controls**: Identified material weaknesses in internal controls over financial reporting, with a remediation plan in place. The report highlights improved financial performance but underscores the need for enhanced internal controls.