The AZEK Company Inc. (AZEK) Earnings Call Transcript & Summary

Welcome to the AZEK Company's 2021 Annual Meeting of Stockholders. [Operator Instructions] I would now like to turn the call over to your host. Mr. Kardish, you may begin.

Thank you. Good morning, everyone. Welcome to the AZEK Company's 2021 Annual Meeting of Stockholders. I am Paul Kardish, AZEK's Chief Legal Officer and Corporate Secretary. We are holding this meeting virtually via webcast to support the health and well-being of our stockholders, employees and their families due to the continued public health impact of the ongoing pandemic. Before we get started, there are a few housekeeping items I would like to address. Please note that we have established an agenda and rules of conduct for this meeting. The agenda and rules of conduct can be found in the lower right-hand corner of your screen. Technical support information is contained in the rules of conduct. We will conduct the meeting in accordance with these documents, and your cooperation in observing the rules of conduct is greatly appreciated. Stockholders of record as of March 25, 2021 will have the opportunity to vote their shares and to submit questions during the meeting. [Operator Instructions] You will need your control number printed on your proxy card or on your notice of Internet availability to vote your shares. [Operator Instructions] We ask that questions from stockholders be succinct and relevant to the matters properly before the meeting. We will respond to the appropriate questions in the time we have today. After the meeting, if you are a stockholder of record as of March 25, 2021, and you feel an appropriate question was not addressed, please feel free to submit to us by e-mail at [email protected], and we will endeavor to answer your question when received. With that, I would like to turn the call over to AZEK's Chairman of the Board, Gary Hendrickson, who will preside as Chairman over this year's meeting.

Good afternoon, ladies and gentlemen. It's my pleasure to welcome you today. I now call the AZEK Company's 2021 Annual Meeting of Stockholders to order. I will begin by introducing the other members of AZEK's Board of Directors. Joining me today are Jesse Singh, who also serves as AZEK's President and Chief Executive Officer; Sallie Bailey; Fumbi Chima; Howard Heckes; James Hirshorn; Brian Klos; Romeo Leemrijse; Blake Sumler; Ashfaq Qadri; Bennett Rosenthal; and Brian Spaly. Also present today representing AZEK's independent auditor is Phillip Mahere with PricewaterhouseCoopers. Mr. Mahere is available to respond to any questions, which PwC should appropriately address during the question-and-answer portion of this meeting. Paul Kardish, AZEK's Chief Legal Officer and Corporate Secretary, will serve as Secretary of the meeting and record the proceedings. Mr. Kardish will now discuss the procedures for transacting the business of the meeting and report on the presence of a quorum.

Thank you, Gary. This meeting is being held pursuant to the printed notice first mailed on April 2, 2021 to each stockholder of record on March 25, 2021, which are the stockholders entitled to vote at this meeting. The affidavit from Broadridge Financial Solutions certifying the notice of Annual Stockholders' Meeting and proxy card were duly mailed to each stockholder of record entitled to vote at this meeting will be filed with the records of the meeting. In accordance with Delaware law, a list of stockholders entitled to vote at this meeting has been available for at least 10 days prior to this meeting and has also been made available to stockholders during this meeting and can be accessed on your screen. I will act as the Inspector of Election for this meeting, and I have been duly sworn to perform such duties. The count of shares present prior to the commencement of the meeting indicated that there are represented in person or by proxy shares of AZEK's common stock representing a majority of the outstanding shares of stock entitled to vote at this meeting, constituting a quorum for the transaction of business.

Thank you, Paul. Based on the total shares of AZEK's common stock held by holders of record present at the meeting, either in person or by proxy, I confirm that a quorum is present. This meeting is now duly convened for the purposes of transacting business properly brought before it. I now declare the polls open for each matter to be voted on at this meeting. Voting today is by proxy and electronic ballot. Stockholders who have submitted proxies or who have previously voted by Internet or phone do not -- and do not wish to change their vote do not need to take any further action. Your votes will be counted automatically. [Operator Instructions] I will now review the 2 matters for stockholder consideration at this meeting. The first item of business is the election of Class 1 directors for a 3-year term until the 2024 Annual Meeting of Stockholders. The 2 individuals who have been nominated to serve are Sallie Bailey and Ashfaq Qadri. AZEK has not received timely notice of any other nominations by a stockholder as required under AZEK's bylaws. Therefore, I declare the nominations closed. The second item of business is the ratification of the appointment by the Board of Directors of PricewaterhouseCoopers as AZEK's independent auditor for the current fiscal year. We will now pause for a moment to give anyone who hasn't yet voted a chance to vote. [Voting]

I now declare the polls closed for voting. We will now pause for a moment to give the Inspector of Election a moment to tabulate the votes on the items of business brought before this meeting, after which I would ask the Secretary to report the preliminary voting results.

Thank you, Gary. The preliminary voting results are as follows. With respect to proposal 1, the election of directors, each director nominee has received an affirmative vote of over 76% of the votes cast. This is more than the percentage vote required for election. Therefore, each director nominee has been elected. With respect to proposal #2, the ratification of PricewaterhouseCooper (sic) [ PricewaterhouseCoopers ] as AZEK's independent auditor for the current fiscal year, this proposal has received over 99% of the votes cast at the meeting in favor. This is more than the requisite majority, and this proposal has therefore been approved. The final voting results will be reported on Form 8-K that will be filed with the Securities and Exchange Commission within 4 business days after the date of this meeting. The final report of the Inspector of Elections will be filed with the records of the meeting. This concludes the official business to come before the meeting at 9:08 -- excuse me, 10:08 a.m. Eastern Time, and the meeting is hereby adjourned. We will now open the meeting to questions. However, only questions that are germane to the meeting will be addressed. If you submitted a question that you feel was relevant to the meeting, and we do not address it, please feel free to submit to us by e-mail at [email protected], and we will endeavor to respond to your question in a timely manner after it is received. [Operator Instructions] It appears that we do not have any questions. Thank you for your attention during today's meeting. We appreciate your interest in the AZEK Company. This now concludes the meeting. Thank you for joining, and have a pleasant day.

This now concludes the AZEK Company's 2021 Annual Meeting of Stockholders. Thank you, and have a wonderful day.