Janus International Group Inc

Previous wording

Dollar amounts are shown in millions of dollars, unless otherwise noted, and rounded to the nearest million except for share and per share amounts.

Current wording

Dollar amounts are shown in millions of dollars, unless otherwise noted, and rounded to the nearest tenth of a million except for share and per share amounts.

Previous wording

•Results of Operations: This section provides an analysis of our unaudited results of operations for the three and six month periods ended June 29, 2024 and July 1, 2023.

Current wording

•Results of Operations: This section provides an analysis of our unaudited results of operations for the three and nine month periods ended September 28, 2024 and September 30, 2023.

Previous wording

•Liquidity and Capital Resources: This section provides a discussion of our financial condition and an analysis of our unaudited cash flows for the three and six month periods ended June 29, 2024 and July 1, 2023. This section also provides a discussion of our contractual obligations, other purchase commitments and customer credit risk that existed at June 29, 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.

Current wording

•Liquidity and Capital Resources: This section provides a discussion of our financial condition and an analysis of our unaudited cash flows for the three and nine month periods ended September 28, 2024 and September 30, 2023. This section also provides a discussion of our contractual obligations, other purchase commitments and customer credit risk that existed at September 28, 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.

Previous wording

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 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.

Current wording

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 (“U.K.”), 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 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 the restoration, rebuilding, and replacement (“R3”) of self-storage facilities.

Previous wording

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”), Steel Door Depot.com, LLC (“Steel Door Depot”), Janus International Canada, Ltd. (“Janus Canada”), and Terminal Door, LLC (“Terminal Door”).

Current wording

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 (“Janus Core”), together with each of its operating subsidiaries, 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”), Steel Door Depot.com, LLC (“Steel Door Depot”), Janus International Canada, Ltd. (“Janus Canada”), and Terminal Door, LLC (“Terminal Door”).

Previous wording

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.

Current wording

Furthermore, our business is comprised of three primary sales channels: self-storage - new construction, self-storage - R3 (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.

Previous wording

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).

Current wording

The concept of 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 (Janus 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 Structures).

Previous wording

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.

Current wording

Janus’s operational and corporate strategy is 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.

Previous wording

•Net income decreased to $27.6 for the three months period ending June 29, 2024, compared to $37.0 for the three months period ending July 1, 2023.

Current wording

•Net income decreased to $11.8 for the three month period ending September 28, 2024, compared to $37.0 for the three month period ending September 30, 2023.

Previous wording

•Adjusted EBITDA decreased to $64.5 for the three months period ending June 29, 2024 compared to $74.0 for the three months period ending July 1, 2023.

Current wording

•Adjusted EBITDA decreased to $43.1 for the three month period ending September 28, 2024 compared to $76.2 for the three month period ending September 30, 2023.

Previous wording

•Cash flows from operations of $59.6 and free cash flow of $49.3 were generated for the six months period ending June 29, 2024 compared to $96.6 cash flows from operations and $87.0 free cash flow for the six months period ending July 1, 2023.

Current wording

•Cash flows from operations of $102.6 and free cash flow of $88.6 were generated for the nine month period ending September 28, 2024 compared to $146.5 cash flows from operations and $133.0 free cash flow for the nine month period ending September 30, 2023.

Previous wording

•Common stock worth $10.1 was repurchased in the three months ended June 29, 2024, which was 0.75 million shares as part of our previously announced $100.0 share repurchase program.

Current wording

•Common stock worth $45.5 was repurchased in the three months ended September 28, 2024, which consisted of 4,265,363 shares, as part of our previously announced $100.0 share repurchase program. Common stock worth $70.9 was repurchased in the nine months ended September 28, 2024, which consisted of 6,038,919 shares, as part of our previously announced $100.0 share repurchase program.

Previous wording

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.”

Current wording

Information regarding use of Adjusted EBITDA, Free Cash Flow, and Net Leverage Ratio — each a non-GAAP measure, and a reconciliation to the most comparable GAAP measure, are included in “Non-GAAP Financial Measures.”

Previous wording

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.

Current wording

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 that the international segment does not sell into the Commercial sales channel. Janus International represents approximately 5% - 10% of Janus’s revenue.

Previous wording

Our accretive M&A strategy focuses on (i) portfolio diversification into attractive and logical adjacencies, (ii) geographic expansion, and (iii) technological innovation. Inorganic growth, through acquisitions, serves to increase Janus’s strategic growth.

Current wording

Our accretive merger and acquisition (“M&A”) strategy focuses on (i) portfolio diversification into attractive and logical adjacencies, (ii) geographic expansion, and (iii) technological innovation. Inorganic growth, through acquisitions, serves to increase Janus’s strategic growth.

Previous wording

Human capital is also one of the main cost drivers of the manufacturing, selling, and administrative processes of Janus. As a result, management believes that headcount reflects 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. As of June 29, 2024, and July 1, 2023, the headcount was 2,386 employees (including 430 temporary employees) and 2,385 employees (including 585 temporary employees), respectively.

Current wording

Human capital is also one of the main cost drivers of the manufacturing, selling, and administrative processes of Janus. As a result, management believes that headcount reflects Janus’s operational status, indicating whether the business is expanding or contracting. As of September 28, 2024, and September 30, 2023, the headcount was 2,306 employees (including 375 temporary employees) and 2,374 employees (including 503 temporary employees), respectively.

Previous wording

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 revenues also include trucking terminal renovation, construction, remodeling, and maintenance services to trucking customers.

Current wording

Service Revenues. Service revenues reflect installation services to customers for facilities, including 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 revenues also include trucking terminal renovation, construction, remodeling, and maintenance services to trucking customers.

Previous wording

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 correlate to our service revenues.

Current wording

Service Cost of Revenues. Cost of services includes third-party installation-based subcontractor costs directly associated with the installation of our products. We expect our service cost of revenues to correlate to our service revenues.

Previous wording

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 on certain assets, and amortization. We expect general and administrative expenses to correlate to overall revenues, with some deviations for strategic investments.

Current wording

General and Administrative Expense. General and administrative (“G&A”) expenses are comprised primarily of expenses relating to back office employee compensation and benefits, provision for expected credit losses, travel, meals and entertainment expenses as well as depreciation on certain assets, and amortization. We expect general and administrative expenses to correlate to overall revenues, with some deviations for strategic investments.

Previous wording

Interest Expense, net. Consists of interest expense on short-term and long-term debt and amortization on deferred financing fees (see Note 9 to our Unaudited Condensed Consolidated Financial Statements in this Form 10-Q for additional information), partially offset by interest income earned on U.S. Treasury bills.

Current wording

Interest Expense, net. Consists of interest expense on short-term and long-term debt and amortization on deferred financing fees (see Note 9 to our Unaudited Condensed Consolidated Financial Statements in this Form 10-Q for additional information), partially offset by interest income earned on cash equivalents.

Previous wording

The following table sets forth key performance measures for the three and six month periods ended June 29, 2024 and July 1, 2023:

Current wording

The following tables set forth key performance measures for the three and nine month periods ended September 28, 2024 and September 30, 2023:

Previous wording

2023, primarily due to decreased revenue as noted above, yielding a lower margin, and increased operating expenses due to the investment in the Atlanta software center, partially offset by inorganic revenue and EBITDA from the T.M.C. Acquisition.

Current wording

Adjusted EBITDA decreased by $33.1 or 43.4% for the three month period ended September 28, 2024 compared to the three month period ended September 30, 2023, and decreased by $37.5 or 17.7% for the nine month period ended September 28, 2024 compared to the nine month period ended September 30, 2023, primarily due to decreased margin from the decrease in revenue as noted above, as well as the increase in provision for expected losses on accounts receivable, and a decline from leverage on fixed costs, yielding a lower margin, partially offset by inorganic revenue and EBITDA from the T.M.C. Acquisition.

Previous wording

Adjusted EBITDA as a percentage of revenue decreased 130 bps for the three month period ended June 29, 2024, and was consistent for the six month period ended June 29, 2024. The decrease in Adjusted EBITDA in the three month period ended June 29, 2024, was primarily due to decreased revenue, yielding a decline in margin, coupled with increase in operating expenses from the build out of the Atlanta service center, and a decline in leveraging our fixed costs. . (See“Non-GAAP Financial Measures” section).

Current wording

Adjusted EBITDA as a percentage of revenue decreased 850bps and 260bps for the three and nine month periods ended September 28, 2024, respectively. The decrease in Adjusted EBITDA in the three and nine month period ended September 28, 2024, was primarily due to the items noted above. (See“Non-GAAP Financial Measures” section).

Previous wording

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.

Current wording

Janus’s business strategy includes growth through the acquisition of other companies that yield 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.

Previous wording

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

Current wording

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

Previous wording

R3 sales decreased by $18.9 or 23.5% and $33.7 or 20.3% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively. The R3 sales decrease was approximately 80% attributed to a decline in facility expansion and retail big-box conversion activity.

Current wording

R3 sales decreased by $29.8 or 34.4% and $63.4 or 25.1% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively. The R3 sales decrease was due to project deferrals associated with macroeconomic uncertainty as well as a 50% decline in facility expansion and retail big-box conversion activity.

Previous wording

Commercial and Other sales decreased by $10.7 or 12.3% and $26.2 or 15.3% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively, due to a volume decline for rolling sheet doors in the carports and sheds market and market declines in demand affecting the commercial steel roll up door market.

Current wording

Commercial and other sales decreased by $6.9 or 7.8% and $33.8 or 13.1% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023. The decrease was attributable to a decline in volumes for rolling sheet doors in the carports and sheds market, partially offset by $13.7 and $17.7 in inorganic revenue from the T.M.C. Acquisition, respectively.

Previous wording

The cost of revenues decreased by $14.9 or 9.7% and $22.8 or 7.4% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively. The decrease in product cost of revenues of $11.2 and $20.9 for the three and six month periods ended June 29, 2024, respectively, is primarily attributable to the decline in revenue volume. The decrease in service cost of revenues of $3.7 and $1.9 for the three and six month periods ended June 29, 2024, respectively, is due to a $2.5 out of period adjustment, offset by the increase in service cost of revenues needed to support the increase in service revenues.

Current wording

The cost of revenues decreased by $22.1 or 13.7% and $44.9 or 9.6% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively. The decrease in product cost of revenues of $27.1 and $47.9 for the three and nine month periods ended September 28, 2024, respectively, is primarily attributable to the decline in volume. The increase in service cost of revenues of $5.0 and $3.0 for the three and nine month periods ended September 28, 2024, respectively, is primarily attributable to the T.M.C. Acquisition partially offset by the decline in organic volume.

Previous wording

Interest expense decreased $1.8 or 12.2% and $3.5 or 11.4% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively, primarily due to voluntary debt repayments of $21.9 million during the six month period ended June 29, 2024 and $85.3 million during the year ended December 30, 2023 as well as the Repricing Agreement in April 2024, and the investment in U.S. Treasury bills which resulted in interest income of $0.4 for the three and six month periods ended June 29, 2024. (See “Liquidity and Capital Resources” section).

Current wording

Interest expense, net decreased $2.9 or 20.0% and $6.4 or 14.1% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively, primarily due to voluntary debt repayments of $21.9 million during the nine month period ended September 28, 2024 and $85.3 million throughout the 2023 fiscal period, as well as the Repricing Agreement in April 2024, which lowered the overall interest rate, and the investment in cash equivalents, which resulted in interest income of $0.8 and $1.2 for the three and nine month periods ended September 28, 2024, respectively. (See “Liquidity and Capital Resources” section).

Previous wording

Income tax expense decreased by $2.9 or 23.4% and $1.4 or 6.5% from $12.4 and $21.4 for the three and six month periods ended July 1, 2023, respectively, to $9.5 and $20.0 expense for the three and six month periods ended June 29, 2024, respectively, due to decrease in income before taxes.

Current wording

Income tax expense decreased by $9.1 or 73.4% and $10.4 or 30.9% from $12.4 and $33.7 for the three and nine month periods ended September 30, 2023, respectively, to $3.3 and $23.3 expense for the three and nine month periods ended September 28, 2024, respectively, due to a decrease in income before taxes.

Previous wording

The $9.4 or 25.4% and $4.7 or 7.5% decrease in net income for three and six month periods ended June 29, 2024 as compared to the three and six month periods ended July 1, 2023, respectively, is largely due to a decrease in revenues and increase in operating expenses partially offset by a decrease in cost of revenues for the three and six month periods ended June 29, 2024.

Current wording

The $25.2 or 68.1% and $29.9 or 29.9% decrease in net income for three and nine month periods ended September 28, 2024 as compared to the three and nine month periods ended September 30, 2023, respectively, is largely due to a decrease in revenues and increase in operating expenses partially offset by a decrease in cost of revenues for the three and nine month periods ended September 28, 2024.

Previous wording

We operate in and report financial results for two segments: Janus North America and Janus International with the following sales channels: New Construction, Self-Storage R3, and Commercial and Other.

Current wording

We operate in and report financial results for two segments: Janus North America and Janus International with the following sales channels: self-storage - new construction, self-storage - R3, and commercial and other.

Previous wording

R3 sales decreased by $19.0 or 24.5% and $33.1 or 20.7% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively. The R3 sales decrease was approximately 80% attributed to a decline in facility expansion and retail big-box conversion activity.

Current wording

R3 sales decreased by $31.3 or 36.8% and $64.4 or 26.3% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively. The R3 sales decrease was due to project deferrals associated with macroeconomic uncertainty as well as a 50% decline in facility expansion and retail big-box conversion activity.

Previous wording

Commercial and other sales decreased by $10.8 or 12.4% and $26.8 or 15.7% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, due to a volume decline for rolling sheet doors in the carports and sheds market and market declines in demand affecting the commercial steel roll up door market.

Current wording

Commercial and other sales decreased by $7.4 or 8.3% and $33.6 or 13.0% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively. The decrease was attributable to an decline in volumes for rolling sheet doors in the carports and sheds market, partially offset by $13.7 and $17.7 in inorganic revenue from the T.M.C. acquisition, respectively.

Previous wording

Income from operations decreased by $10.5 or 17.1% and $3.0 or 2.7% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively, primarily due to an decrease in revenue yielding a decline in margin along with an increase in selling and general and administrative expenses.

Current wording

Income from operations decreased by $38.9 or 60.2% and $42.0 or 24.0% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively, primarily due to an decrease in revenue yielding a decline in margin.

Previous wording

Results of Operations - Janus International - For the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023:

Current wording

Results of Operations - Janus International - For the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023:

Previous wording

The $3.2 or 15.1% and $10.1 or 23.6% decrease in revenue for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively, is due to a decline in volume as a result of the U.K. recessionary period.

Current wording

Revenues increased $0.9 or 4.4% for the three month period ended September 28, 2024 compared to the three month period ended September 30, 2023. The $9.1 or 14.4% decrease in revenue for the nine month period ended September 28, 2024 compared to the nine month period ended September 30, 2023 is due to a decline in volume as a result of the U.K. recessionary period earlier in the year.

Previous wording

The following table illustrates the sales by channel for the three and six month periods ended June 29, 2024 and July 1, 2023.

Current wording

The following tables illustrate the sales by channel for the three and nine month periods ended September 28, 2024 and September 30, 2023.

Previous wording

New Construction sales decreased by $3.3 or 17.8% and $9.5 or 25.6% for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023, respectively. The decrease is due to a decline in volume as a result of the U.K. recessionary period.

Current wording

New construction sales decreased by $0.6 or 3.2% and $10.1 or 18.1% for the three and nine month periods ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023, respectively. The year-to-date decrease is due to a decline in volume as a result of the U.K. recessionary period.

Previous wording

Income from operations decreased from $2.8 to $0.6 for the three month period ended June 29, 2024, and from $5.1 income from operations to a $0.1 loss from operations for the three and six month periods ended June 29, 2024 compared to the three and six month periods ended July 1, 2023. The decrease for the period is primarily due to a decrease in sales volume.

Current wording

Income from operations decreased from $1.9 to $1.0 for the three month period ended September 28, 2024, and from $7.0 to $0.9 for the nine month period ended September 28, 2024 compared to the three and nine month periods ended September 30, 2023. The decrease for the periods is primarily due to a decrease in sales volume and decline from fixed costs leverage.