AZEK restates FY2021-2023 due to inventory fraud; preliminary Q2 beats, raises FY2024 outlook

AZEK Co Inc.

Former employee misstated inventory; income overstated $26-29M aggregate across FY2021-2023 and prior; financials no longer reliable.
Preliminary Q2 FY2024 net sales $418.4M (+11% YoY); residential segment $402.5M (+18% YoY).
YTD FY2024 net income $74-75M, adjusted EBITDA $167-169M (margin ~25.3-25.6%).
Audit Committee concluded restatement; no management involvement; material weaknesses expected.

item 2.02 item 4.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

AZEK Co Inc. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: PricewaterhouseCoopers LLP

Exact text from the filing

the Audit Committee concluded that the consolidated financial statements for the Affected Periods should no longer be relied upon due to the net overstatements described above.

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Earnings Releases SEC 8-K Item 2.02 confidence 0.9

AZEK Co Inc. reported the six months ended March 31, 2024 results: revenue Consolidated Net Sales of $658.9 million, net income Net income in the range of $74 to $75 million. Guidance raised.

Period: the six months ended March 31, 2024
Revenue: Consolidated Net Sales of $658.9 million
Net income: Net income in the range of $74 to $75 million
Guidance: raised
Result: preliminary results

Exact text from the filing

For the six months ended March 31, 2024, AZEK expects to report results, including: • Consolidated Net Sales of $658.9 million, representing 11% year-over-year growth o Adjusted Net Sales excluding results for Vycom increased 19% year-over-year • Net income in the range of $74 to $75 million • Net profit margin in the range of 11.2% to 11.4% • Adjusted EBITDA in the range of $167 to $169 million • Adjusted EBITDA margin in the range of 25.3% to 25.6%

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Earnings Releases SEC 8-K Item 2.02 confidence 0.9

AZEK Co Inc. reported the three months ended March 31, 2024 results: revenue Consolidated Net Sales of $418.4 million. Guidance raised.

Period: the three months ended March 31, 2024
Revenue: Consolidated Net Sales of $418.4 million
Guidance: raised
Result: preliminary results

Exact text from the filing

Growth and Material Conversion PRELIMINARY FINANCIAL RESULTS For the three months ended March 31, 2024, AZEK expects to report results, including: • Consolidated Net Sales of $418.4 million, representing 11% year-over-year growth o Adjusted Net Sales excluding results for Vycom increased 17% year-over-year • Residential Segment Net Sales of $402.5 million,

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Source: SEC EDGAR

accession 0001628280-24-021666

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