Janus Intl (JBI) Q3 2026 Earnings Call Transcript

DATE

Tuesday, Nov. 10, 2026

CALL PARTICIPANTS

• Senior Director, Investor Relations - Sara Macioch
• Chief Executive Officer - Ramey Jackson
• Chief Financial Officer - Anselm Wong

TAKEAWAYS

• Total Revenue -- $213.1 million, representing a 2.8% decrease reflecting pressure in North American self-storage markets.
• Adjusted EBITDA -- $34 million, declining 22% due to volume declines and unfavorable product and sales channel mix.
• Adjusted EBITDA Margin -- 16.0%, a decrease of 390 basis points from the prior year period.
• Adjusted Diluted EPS -- $0.08, compared to $0.16 in the third quarter of 2025.
• Self-Storage Revenue -- $146.9 million, down 5.0% as higher interest rates and steel costs delayed project starts.
• R3 Segment Revenue -- $51.2 million, a 10.6% decline driven by reduced door replacement and renovation activity.
• New Construction Revenue -- $95.7 million, down 1.6% as softness in North America offset contributions from the Kiwi II Construction acquisition.
• International Segment Revenue -- $30 million, growing 6% due to market share gains and new construction demand.
• Commercial and Other Revenue -- $66.2 million, increasing 2.3% behind strength in the freight terminal business.
• Noke Connected Devices -- 524,000 units, representing 19.4% year over year growth in smart entry technology adoption.
• Steel Costs -- Increased 58% year over year and 21% sequentially, negatively impacting project economics for customers.
• Full Year Revenue Guidance -- Revised to a range of $855 million to $865 million, down from previous expectations.
• Full Year Adjusted EBITDA Guidance -- $127 million to $133 million, reflecting an adjusted EBITDA margin of approximately 15.1% at the midpoint.
• Inorganic Revenue Guidance -- $55 million to $60 million, representing contributions specifically from Kiwi II Construction.
• Annualized Cost Savings -- $10.8 million, expected from structural improvements and cost alignment actions already initiated.
• Free Cash Flow -- $31.5 million for the quarter, supporting a trailing 12-month conversion rate of 203% of adjusted net income.
• Total Liquidity -- $173.7 million, consisting of $100 million in cash and available borrowing capacity.
• Net Leverage -- 2.9x, remaining at the high end of the company target range of 2 to 3.
• Share Repurchases -- 5 million shares bought for $25.3 million during the quarter, with $38.1 million remaining on the current authorization.
• Debt Prepayment -- $30 million, representing a voluntary payment made toward the first lien term loan.
• Goodwill Impairment -- $18.3 million, related to write downs for the BETCO and Kiwi II reporting units following lower volume forecasts.
• Capital Expenditures -- $2.5 million for the quarter, focused on maintenance and operational efficiency.

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RISKS

• Jackson stated, "the pace of self-storage development continued to lag our expectations," noting that macroeconomic factors have created a sequentially more challenging operating environment.
• Wong warned that "increases in interest rates and steel costs added further pressure to project economics and customer investment decisions," contributing to delays in new project starts.
• Jackson indicated that "prolonged market softness is also putting increased pressure on certain market participants across the competitive landscape."
• Wong noted that "continued volume pressure and lower fixed cost absorption has offset a portion of the savings" from recent restructuring efforts in the near term.

SUMMARY

Janus International Group, Inc. (NYSE:JBI) reported third quarter results that reflected a challenging macroeconomic environment characterized by rising interest rates and sharply higher steel costs. Management stated that these factors have caused customers to delay new development projects and extend lease-up periods at existing facilities, particularly impacting the North American self-storage and Kiwi II Construction segments. The company reported a net loss of $13.3 million for the quarter, which included an $18.3 million non-cash impairment charge related to reporting units with lowered near-term forecasts. Despite lower volumes, the company generated $31.5 million in free cash flow and continued its capital allocation strategy through debt prepayment and share repurchases. Management noted that it has not yet seen evidence of demand improvement and has revised full-year guidance downward to reflect current market conditions.

• The company is evaluating product designs to improve affordability for customers facing high material costs. CEO Jackson stated, "We're relooking at the product line to adjust it to maybe feature decontent some things to provide more optionality to our customers."
• Janus implemented cost-cutting measures expected to yield $10.8 million in annualized savings, with approximately half realized in 2026.
• The Noke Smart Entry platform remains a growth priority, with management launching a redesigned application to enhance customer experience.
• New project starts are the primary area of delay, as Jackson noted that customers generally complete projects once construction has physically commenced.
• Management reported that while large institutional REITs remain steady in their renovation activities, discretionary R3 spending from other customer segments has faced pressure.
• The International segment provided a geographic offset to domestic weakness, achieving 6% revenue growth through market share gains.

INDUSTRY GLOSSARY

• Noke Smart Entry: A technology-enabled electronic lock and total access control cellular solution for the self-storage industry.
• R3: A business segment focused on the Restore, Remodel, and Replace activities for existing self-storage facilities.
• Kiwi II Construction: A provider of metal building systems for the self-storage industry acquired by Janus to expand its project content.
• Adjusted EBITDA: A non-GAAP financial measure that excludes interest, taxes, depreciation, amortization, and other non-recurring items such as restructuring charges and impairment.
• Net Leverage Ratio: The ratio of total debt minus cash to the trailing 12-month adjusted EBITDA.
• Free Cash Flow Conversion: A metric calculated as free cash flow divided by adjusted net income, measuring the efficiency of turning profits into cash.

Full Conference Call Transcript

Operator: Hello, and welcome to the Janus International Group Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to your host, Ms. Sara Macioch, Senior Director, Investor Relations of Janus. Thank you. You may begin, Ms. Macioch.

Sara Macioch: Thank you, operator, and thank you all for joining our earnings conference call. I am joined today by our Chief Executive Officer, Ramey Jackson; and our Chief Financial Officer, Anselm Wong. We hope that you have seen our earnings release issued this morning. We have also posted a presentation in support of this call, which can be found in the Investors section of our website at janusintl.com. Our remarks in the press release, presentation and on this call contain forward-looking statements regarding the company's business, strategy, operations and financial performance.

Please review the forward-looking statements section in today's press release and in our SEC filings for various factors that could cause our actual results to differ materially from our forward-looking statements and projections. The company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, non-GAAP financial measures will be referenced in this call. A reconciliation of these measures to the most directly comparable GAAP financial measure can be found in our earnings press release and presentation. On today's call, Ramey will provide an overview of our business.

Anselm will continue with the discussion of our financial results and revised 2026 guidance before Ramey shares some closing thoughts, and we open up the call for your questions. At this point, I will turn the call over to Ramey.

Ramey Jackson: Thanks, Sara, and good morning, everyone. Third quarter results reflected continued pressure, particularly within North American self-storage. While we remain focused on execution and serving our customers, the pace of self-storage development continued to lag our expectations. During the quarter, increases in interest rates and steel costs have added further pressure to project economics and customer investment decisions against an already uncertain market backdrop. At the same time, longer lease-up periods at existing facilities caused certain customers to delay the start of new development projects. Together, these factors created a sequentially more challenging operating environment and contributed to lower volumes and subdued project activity, resulting in total revenues of $213.1 million and adjusted EBITDA of $34 million.

While these dynamics impacted Kiwi II Construction during the quarter, our long-term view of the business remains intact, supported by continued customer engagement, the project pipeline, and a strategic fit with a focus on increasing facility content. Based on our year-to-date performance and current expectations for the remainder of the year, we are revising our full year outlook. We believe our guidance appropriately reflects the operating environment we are seeing today and provides a realistic framework for the balance of the year. Anselm will provide additional detail on our updated guidance and underlying assumptions shortly. As we navigate the current environment, we remain focused on the factors within our control.

Our business continues to generate significant free cash flow, and combined with our strong balance sheet, this provides us with the financial flexibility to take actions to improve operating efficiencies and better align our cost structure with the current demand. As disclosed in our recent 8-K, the actions we have already taken this year are expected to generate approximately $10.8 million of annualized cost savings once fully implemented. While lower volumes have muted those benefits in the near term, we believe these actions represent structural improvements that will strengthen profitability and create a more efficient and resilient organization. The prolonged market softness is also putting increased pressure on certain market participants across the competitive landscape.

We believe our scale, financial flexibility, breadth of capabilities and ability to consistently support our customers continue to differentiate Janus in this environment. We continue to evaluate opportunities to simplify the business, improve efficiency and align our resources with the areas of the portfolio that offer the most attractive long-term opportunities. This includes regularly assessing our operations, manufacturing footprint, cost structure and business unit organization to determine where we can improve performance and streamline our go-to-market approach. This ongoing discipline is an integral part of how we manage the business. As we optimize the business not only for the current demand environment, but also for the future ahead, our long-term strategic priorities remain unchanged.

We continue to believe in the opportunities to increase our content within self-storage, expand adoption of our smart security solutions, strengthen our position in commercial markets and create value through disciplined capital allocation. Importantly, we do not believe the factors affecting our revised outlook alter the long-term opportunity associated with these priorities. Rather, the actions we are taking are intended to improve our execution against them while strengthening our operating model and competitive positioning over time. With that in context, I'd like to briefly discuss our progress against our growth strategic priorities, beginning with greater penetration of self-storage. We continue to expand and refine our product offering in order to adapt to our customers' changing needs.

This approach allows us to serve a broader portion of the market, increase our content opportunities and provide solutions that align with a range of customer budgets and project requirements while maintaining our commitment to quality and performance. Next, ramping smart security solutions through our Noke Smart Entry platform remains a central pillar of our long-term growth strategy. As a first mover in bringing the technology-enabled access control to self-storage, we continue to see meaningful opportunities to improve the way facilities are operated and secured. At the end of the third quarter, we had 524,000 connected devices, up 19.4% year-over-year.

Earlier this month, at MSMs, The Show, we announced a major enhancement to the Noke app design to further improve the customer experience. As the platform scales, our focus remains on driving adoption, expanding recurring revenue opportunities and improving profitability. The third priority of our growth strategy is outperforming in the commercial market. While the commercial sheet door market remains challenged, we are encouraged by demand improvements across our rolling steel and carport and shed categories, and we continue to target growth and expansion opportunities, including data centers. Our final priority is winning through disciplined strategic acquisitions. M&A remains an important component of our long-term growth strategy, and our approach continues to be selective and disciplined.

Importantly, we believe our scalable operating platform, strong cash flow profile and integration experience position us well to create value from acquisitions over time. As we look ahead, our immediate priority is executing against the revised expectations we are establishing today. We remain focused on serving our customers, continuing to align our cost structure to dynamic market conditions, improving operating performance and allocating capital reasonably. With that, I'll turn the call over to Anselm to review our third quarter financial performance and the drivers of our revised outlook.

Anselm Wong: Thank you, Ramey. Ramey spoke to our strategy and results at a high level, and I will focus my remarks on our financial performance in the third quarter and our updated 2026 guidance. For the third quarter, consolidated revenue of $213.1 million decreased 2.8% as compared to the prior year. Inorganic revenues for the quarter were $10.7 million, reflecting contributions from Kiwi II Construction. At the sales channel level, our self-storage business was down 5%. New Construction decreased 1.6%, while R3 was down 10.6% for the quarter. The decrease in revenues for New Construction was driven by continued softness in North America, which offset contributions from Kiwi II Construction and strength in our international business.

On an organic basis, New Construction revenues were down 12.5% compared to the prior year. The decline in R3 revenue was driven by decreases in door replacement, renovation and conversion and expansion activity. In the third quarter, total revenues in our International segment increased to $30 million, up 6% compared to the prior year period, driven by growth in New Construction and market share gains. For the quarter, revenue in our commercial and other sales channel increased by 2.3%. The increase was primarily driven by contributions from our freight terminal business, partially offset by continued softness in demand for commercial sheet doors. Third quarter adjusted EBITDA of $34 million was down 22% compared to the third quarter of 2025.

This resulted in an adjusted EBITDA margin of 16%, a decrease of approximately 390 basis points from the prior year period. The decrease in margins year-over-year is primarily attributable to volume declines as well as product and sales channel mix. For the third quarter, we produced adjusted net income of $10.8 million compared to adjusted net income of $22.6 million in the prior year period. Adjusted diluted EPS for the quarter was $0.08. We generated cash from operating activities of $34 million, free cash flow of $31.5 million in the quarter. On a trailing 12-month basis, this represents a free cash flow conversion of adjusted net income of 203% and a strong free cash flow yield.

Capital expenditures in the quarter were $2.5 million. We ended the quarter with $173.7 million in total liquidity, including $100 million of cash and equivalents on the balance sheet. Our total outstanding long-term debt at quarter end was $518 million and net leverage was 2.9x, within our target range of 2 to 3x. Our liquidity levels provide us flexibility in our capital allocation priorities. During the quarter, we made a voluntary prepayment of $30 million on our first lien term loan and repurchased approximately 5 million shares of our common stock for a total of $25.3 million. Year-to-date, we have repurchased approximately 8.2 million shares of our common stock for a total of $42.9 million.

We had $38.1 million remaining on our share repurchase authorization at quarter end. Now moving to our 2026 guidance. The primary change to our outlook since last quarter is lower expected volumes within self-storage. The macroeconomic environment became incrementally more challenging during the quarter, as increases in interest rates and steel costs added further pressure to project economics and customer investment decisions. Combined with longer lease-up periods at existing facilities, these factors have added pressure to project economics and contributed to delays in new project starts. This has been particularly impactful to our Kiwi II Construction business. Reflecting these updated assumptions, we are revising our expectations for the year.

We now expect total revenue in the range of $855 million to $865 million. We also now anticipate inorganic revenues from Kiwi II Construction to be approximately $55 million to $60 million. From a profitability standpoint, we are taking actions to improve our cost structure. As disclosed in our recent 8-K, these actions are expected to generate approximately $10.8 million of annualized cost savings once fully implemented. While we are beginning to realize those benefits, continued volume pressure and lower fixed cost absorption has offset a portion of the savings in the near term. As a result, 2026 adjusted EBITDA is now expected to be in the range of $127 million to $133 million.

This reflects an adjusted EBITDA margin of 15.1% at the midpoint. Our revised guidance reflects the operating environment we are seeing today and does not assume an improvement in these conditions. While near-term demand remains challenged, we continue to generate healthy cash flow, maintain financial flexibility and realize benefits from the cost action implemented throughout the year. While it's still too early to provide specific guidance for next year, based on current market conditions and what we're hearing from our customers, we have not yet seen evidence of an improvement in demand. As a result, we expect headwinds to continue, and we are not currently assuming any improvement to the macro in the immediate future.

Please refer to the presentation we have posted for additional details on key planning assumptions for 2026. Thank you all for your time. I will now turn the call over to Ramey for his closing remarks. Ramey?

Ramey Jackson: Thank you, Anselm. We recognize that our third quarter performance and revised outlook are disappointing. Self-storage volumes have remained below our expectations and the delayed timing of development projects, particularly within Kiwi II Construction, have affected our results and expectations for the year. At the same time, we are taking tangible actions to strengthen the business. We also continue to make progress in areas that are important to our long-term strategy. Noke adoption continues to advance. R3 provides meaningful exposure to facility maintenance and modernization, and our international business expands our participation in developing self-storage markets. We are not relying on a market recovery to drive our near-term actions.

We remain focused on serving our customers, continuing to align our cost structure to anticipated market conditions, managing the business with discipline and allocating capital responsibly. Supported by a strong balance sheet and healthy cash generation, we believe Janus is positioned to navigate the current environment to create long-term value for our shareholders. In closing, I'd like to thank our employees for their continued dedication and our customers and shareholders for their support. We appreciate your participation on today's call. Operator, we would now like to open the lines for Q&A.

Operator: [Operator Instructions] We'll take our first question from Dan Moore with CJS Securities.

Justin Ages: This is Justin Ages on for Dan. Can you dig a little deeper into what you're seeing at Kiwi? What does the annualized run rate revenue and EBITDA look like at this stage? And what caught you most off-guard since the acquisition?

Anselm Wong: Thanks for the question. I think if you look at the run rate, obviously, it's kind of what our current line shows, right, in terms of that roughly in that $60-ish million range. I think what we're seeing there is just more of the same that customers are really pushing out projects and delaying the decisions to move forward and even ongoing projects. I think if you look at the macro trend, you've seen interest rates continue to rise, you see steel prices continue to increase. So you're getting a lot of hesitation from our customers just designed to delay and stretch out projects. And unfortunately, that's what we're seeing in that business.

Ramey Jackson: Yes. Let me add to that. Thanks for the question, Justin. Just to add to that, the macro has gotten worse, not better and then I want to leave you with a couple of data points. Interest rates have increased and steel has increased 58% year-over-year and 21% increase quarter-over-quarter. So it's decreasing margins on storage deals, which has caused an additional pause.

Justin Ages: That's helpful. And then one more. With shares trading at a fraction of their value, or at least by our view, at what point does the Board more seriously contemplate strategic alternatives?

Ramey Jackson: Look, I appreciate the question. It's not something that I'm prepared to comment on, but certainly, the Board is doing its job and is a fiduciary, and we'll certainly look at all options. But thanks for the question.

Operator: We'll take our next question from Phil Ng with Jefferies.

Philip Ng: I appreciate all the color. If I assume pricing tracks reasonably close in terms of the 3Q run rate, it implies your fourth quarter volumes could be down as much as, call it, 20%, which is a pretty substantial drawdown from 3Q and first half. So my question is really, how much of this is just you curtailing production at the inventory level and your customers' project delays, cancellations? If it's a destock, any perspective on how long it's going to take to flush out?

Anselm Wong: Yes. I think -- Phil, thanks for the question. I think the bigger issue is just on the storage side that we've been talking about is that people are -- the macro has just gotten worse and people are really just holding off on decisions to invest in self-storage, whether or not it's new construction or R3. Just keep in mind, like steel price going up, like Ramey said, 20% sequentially, that impacts affordability for all projects. So that's what we're unfortunately seeing further pressure on [indiscernible] there. And that's -- unfortunately, if you do the math, like you said, you're going to see further pressure on the quarter.

Philip Ng: Okay. And then Ramey, did I hear you correctly? Or maybe it was Anselm's comment, even ongoing projects for Kiwi, you're seeing that, like halt, meaning like people are walking away from projects that have started?

Ramey Jackson: Not that have started, no. Actually, once a project, once dirt is starting to move around, they'll certainly complete the projects. It's really the planning of the next projects that is halted.

Philip Ng: Okay. On the R3 side, I was a little more surprised just given -- I mean I appreciate you're lapping a tougher comp. That business tends to be fairly stable because it's more of a replacement repair kind of situation and you got decent momentum with some of your larger REIT customers. Are you seeing any pullback even there from your large institutional customers? Is this more deferring discretionary replacement? Just give us a little more perspective on the R3 side of things. I appreciate the conversion piece is a little more cyclical and lumpy. But like what are you seeing in terms of how your mix of customers on R3 are behaving in this environment?

Anselm Wong: Yes, I think -- thanks, Phil. I think the REIT and large institutions, they seem to be fairly steady in terms of R3. What you're seeing is the discretionary piece like you identified that people are just making hard -- really contemplating before they actually make the call and stuff. And that's what we -- unfortunately, we're seeing that pressure in that other customer segment.

Philip Ng: And then can you size up how big R3, the piece that's more discretionary in nature, like percentage-wise?

Anselm Wong: If you look at R3 generally, it's all discretionary generally, right? Because you're making a decision to either upgrade or improve your facilities. So that's still a normal investment decision that you have. I think the ones you're probably referring to is more when there's an acquisition, then you see a bit more steady business, but that's only when there's a major acquisition. Generally, all general R3 is discretionary.

Operator: We will take our next question from Reuben Garner with StoneX.

Reuben Garner: Thank you. Good morning, everybody. In terms of the outlook for next year, I know it's early, but are you kind of implying that the run rate from the second half of this year is the right way to think about it, meaning if we annualize the what is it, $55-or-so million of second half EBITDA that's a reasonable starting point for next year? And I guess, can you remind us what kind of normal seasonality looks like? I think the second half is roughly 55% or so, but we don't have that many years of history. So any help there would be...

Anselm Wong: Yes. I think I'll answer the easy one is there hasn't been normal seasonality since we've gone public. As you've seen, it's really fluctuated a lot. I think in terms of next year, obviously, it's too early to guide at this point. But I would say what we want to tell you is the trend is not improving at this point. So I would not expect a recovery going into next year at this point. So I think that's kind of what we want to at least provide some insight into that it's just the market has not improved.

Reuben Garner: And your comments about the nondiscretionary piece of R3 being kind of acquisitions. There has been a decent amount of those in recent, kind of, in the last 12 to 24 months. Are you seeing those projects delayed and pushed off, some of the things that normally happen, the refreshes and the renovations that come with those deals? Or is...

Anselm Wong: That's just timing for those. As we've always talked about in the past, whenever there's a major acquisition, there's a structured planning phase and timing of when they do the whole process of upgrading the facility signage, office, et cetera. So that's just regular timing that is playing. We haven't seen any change to that.

Reuben Garner: And then how do you think about New Construction versus R3? I mean, is there a concern that R3 can deteriorate faster because they're smaller projects at times and if you run out of backlog could we see an acceleration in the declines in New Construction to come? Or how do you think about the backlog there or any other insights to New Construction versus R3.

Anselm Wong: Yes, one of the things, Reuben, like we mentioned, steel has continued to rise, and that's impacted affordability. We're not standing here waiting. One of the things we're doing is relooking at the product line to adjust it to maybe feature decontent some things to provide more optionality to our customers. So I think that's the one thing that we can do to help our customers. But I think nothing has changed in terms of how we approach the market. We just said, look, we've got to look at what makes sense for our customers to help them improve their profitability.

Operator: We will take our next question from John Lovallo with UBS.

Nifemi Oduntan: I just wanted to ask on gross margin. So that was -- came in about 33.1%, which was down, I think, about like 600 basis points year-over-year. So I was just going to ask like in North America specifically, could you help us like -- could you help us frame how much of that decline was due to like mix versus Kiwi versus price cost? And like anything else in general? And like how does that compare to margins pre-COVID?

Anselm Wong: All right. There's a lot there to unpack there. Just at a high level, I think as we always talked about, unfortunately, our highest margin business is our North American self-storage piece of our business. And that's declined, as you've seen in the release, meaningfully. So it's a large chunk of what you're seeing is mix, blending into lowering the gross margin, the blended gross margin among all the other businesses. So that's really the biggest impact you're seeing. You can see in the walk, price is minimal. So it's really all coming down to mix of what we're selling in the higher-margin stuff that unfortunately is a lot lower.

Nifemi Oduntan: Okay. Got it. Also, by the way, this is Nifemi on for John. And then secondly, I just wanted to quickly ask on capital allocation. So this quarter, you guys announced that you repurchased 5 million shares for about $25 million and also paid down about $30 million of debt and net leverage, I think it came in about 2.9x, which is at the high end of the range of, I think, 2 to 3x your target range. So I just want to ask how you're thinking about share repurchases and debt repayment and capital allocation in general as you look into Q4 and beyond?

Ramey Jackson: Sure. Yes. Like we've always said, we're really mindful of kind of where the net leverage number is, and we balance between all the different choices we have. I think this past quarter, you saw us pull the trigger on buybacks as well as debt pay down. I think, look, all 3 are including acquisitions are always in play in terms of what makes sense strategically for the company. What I would say in the immediate quarter is that, obviously, we're near the higher end of the range. So that would just dictate kind of some of the things that we can or can't do there. But I think we've always managed to keep it within the range.

Operator: And we'll take our next question from Jeffrey Hammond with KeyBanc Capital Markets.

Mitchell Moore: This is Mitch Moore on for Jeff. My first question, just on some of the restructuring and cost actions. How much of these actions are reflected in the current run rate? What remains incremental for 2027? I guess could you give us a breakdown of those actions, what the annual cost savings for each of these actions are and are you contemplating any further actions with the macro interest rates kind of trending the wrong direction?

Anselm Wong: Sure. No, thanks for the question. I think as we indicated, the annualized announced savings is about $10.8 million. We'll probably realize, we said, roughly about half of it this year, roughly half next year. As to your question about further, yes, I think as Ramey said in his remarks, we're always constantly reviewing the portfolio, the company based on where the volume sits and where the potential volume is. And -- we're not ready to announce it, but there is further cost savings that we can see in the coming quarters that we'll announce.

Mitchell Moore: Great. That's helpful. And then just briefly, could you talk about what triggered the goodwill impairment on Kiwi and BETCO?

Anselm Wong: You can see the forecast. It's really a matter of the forecast dropped meaningfully for the first year. And obviously, we're required to assess kind of the valuation of the Kiwi business at that point in time. I feel -- we still think positively about the strategic rationale for buying that business long term. But unfortunately, with the short-term action, and short-term drop in the forecast, that required us to reassess it and that's what drove the impairment there.

Operator: At this time, there are no further questions in queue. I would now like to hand it back to Ramey for any additional or closing remarks.

Ramey Jackson: Okay. Thank you all for joining us today. We appreciate your support of Janus and look forward to updating you on our progress. Have a great day.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

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