Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Holdings — Deutsche Bank Leveraged Finance Conference 2012
27 slides from Atkore's conference presentation, Oct 10, 2012
Slide 1: Atkore International, Inc. Deutsche Bank Leveraged Finance Conference
ATKORE INTERNATIONAL, INC. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE October 2012 Exhibit 99.1
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements about future events and expectations that constitute forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject t
Slide 3: Disclaimer
DISCLAIMER The Company is 100% owned by Atkore International Group Inc. (“Atkore Group”) and is the sole owner of Atkore International, Inc. (“Atkore International”). Prior to the transactions described below (the “Transactions”), all the capital stock of Atkore International was owned by Tyco Inter
Slide 4: Agenda
• Atkore Overview • Atkore Strategy • Financial Overview AGENDA
Slide 5: Atkore International Business Snapshot
Global Cable & Cable Management first nine months 2011 2012 Revenue: Operating Income: Global Pipe, Tube & Conduit first nine months 2011 2012 Revenue: $774 $791 Operating Income: $ 65 $ 23 $393 $463 $ 47 $ 32 Key brands US 83% Other Americas 11% Europe 3% APAC 3% ATKORE INTERNATIONAL BUSINESS SNAPS
Slide 6: Reputation for Innovation, Quality and Service
Kwik-Fit® (electrical conduit) ColorSpec® ID System (armored cable) REPUTATION FOR INNOVATION, QUALITY AND SERVICE • Recognized as leading innovator in key product categories such as in- line galvanized tubular goods, armored cable and metal framing • Work closely with end-users to develop value-add
Slide 7: Performance Drivers
U.S. non-residential starts Emerging market opportunities U.S. GDP Profitability driven by managing the spread dynamic Selling price Actual cost Y X Y Higher spread Weeks Weeks X = Steel bought Y = Product sold Falling price environment Rising price environment Lower spread & Higher spread & Lower s
Slide 8: Steel Cost
STEEL COST - CRU $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Fiscal 2010 Fiscal 2011 Fiscal 2012
Slide 9: Non-Residential Construction Cycle
Note: Represents calendar year data Source: McGraw-Hill/Deutsche Bank NON-RESIDENTIAL CONSTRUCTION CYCLE 1,425 1,200 1,550 1,444 1,015 1,529 1,867 1,404 1,635 1350 1,272 1,231 1,000 1,200 1,400 1,600 1,800 2,000 McGraw-Hill Linear (McGraw-Hill) Forecast
Slide 10: Atkore Key Achievements Since Transaction
Top graded senior management Imbedded Lean into corporate culture Reduced net working capital by $25 million Acquired Razorwire and FlexHead Industries Divested Morrisville location and GEM Fabrication division ATKORE KEY ACHIEVEMENTS SINCE TRANSACTION
Slide 11: Agenda
• Atkore Overview • Atkore Strategy • Financial Overview AGENDA
Slide 12: Repositioned for Future Growth
2013 – 2014 Capitalize on recovery 2008 – 2012 Streamline operations and portfolio Pre-2008 Growth phase REPOSITIONED FOR FUTURE GROWTH Continued pursuit of discrete initiatives to drive operational efficiencies - LEAN Leverage efficient platform to pursue organic growth – Product expansion – High g
Slide 13: Revenue Improvement Opportunities
Selective Opportunistic Acquisitions REVENUE IMPROVEMENT OPPORTUNITIES Organic growth opportunities – Sales of existing products (cross-selling) – Bundled selling of electrical conduit, cable and other accessories – Increased penetration of highly fragmented mechanical tube market (OEMs) – Geographi
Slide 14: Agenda
Atkore Overview Atkore Strategy Financial Overview AGENDA
Slide 15: Historical Financial Results
(1) Have been restated to reflect discontinued operations First nine months 2009 2010 2011 2011 (1) 2012 Net sales $1,433 $1,433 $1,650 $1,149 $1,226 % growth (38%) 0% 15% n/a 6.7% $30 $140 $123 $116 $88 % growth (93%) 367% (12%) n/a (24%) % margin 2% 10% 7% 10% 7% Capital expenditures $45 $46 $51 $
Slide 16: Strong Cash Flow Characteristics
STRONG CASH FLOW CHARACTERISTICS Free cash flow Adjusted EBITDA (US$mm; Fiscal years ) $30 $140 $123 $0 $100 $200 2009 2010 2011 $116 $88 2011 YTD 2012 YTD ($26) $59 2011 YTD 2012 YTD $244 $72 $44 -$50 $50 $150 $250 $350 2009 2010 2011
Slide 17: Quarterly Balance Sheet Information
3/25/2011 6/24/2011 9/30/2011 12/30/2011 3/30/2012 6/29/2012 QUARTERLY BALANCE SHEET INFORMATION ( US$mm ) A/R Inventory A/P Net Working Capital Senior Notes ABL Other Debt Total Debt Minus: Cash (49) (35) (48) (42) (43) (34) Net Debt
Slide 18: Atkore Summary
• Market leading positions • Reputation for innovation, quality and service • Revenue improvement opportunities • Operations and supply chain efficiency opportunities • Attractive market and cycle timing • Strong cash flow characteristics • Strong management team ATKORE SUMMARY
Slide 19: Atkore International
A atkore INTERNATIONAL
Slide 20: VW). / SE, SO ee
VW). / SE, SO ee A atkore INTERNATIONAL
Slide 21: EBITDA Reconciliation Fiscal 2009 and 2010
EBITDA RECONCILIATION FISCAL 2009 AND 2010 (US$mm) $ $ (969) (35) (932) Restructuring and goodwill impairments (2) Corporate allocations from Tyco (3) Estimated incremental stand-alone costs (4) (17) (17) Non-cash share based compensation (5) Unusual product liability (6) — Non-cash pension expense
Slide 22: EBITDA Reconciliation Fiscal 2009 and 2010 Footnotes
EBITDA RECONCILIATION FISCAL 2009 AND 2010 (1) The net loss for fiscal 2009 include a goodwill impairment charge of $940 million. (2) Represents goodwill impairment charges, facility exit costs and employee severance and benefit costs. (3) Represents the allocation of corporate overhead expenses bas
Slide 23: EBITDA Reconciliation Fiscal 2011
EBITDA RECONCILIATION FISCAL 2011 (US$mm) Net loss $ (17) $ (3) $ (20) Add: Depreciation and amortization Interest expense Provision for income tax — EBITDA Add: Restructuring (1) (1) Non-cash share based compensation (2) Unusual product liability (3) — Non-cash pension expense (4) Full year restruc
Slide 24: EBITDA Reconciliation First Fiscal Nine Months 2011 and 2012
(US$mm) EBITDA RECONCILIATION FIRST FISCAL NINE MONTHS 2011 AND 2012 Combined Results for the Nine Months Ended June 24, 2011 Net (loss) income $ (7) (16) Loss (gain) from discontinued operations - Tax impact on discontinued operations - Net income (loss) from continuing operations (3) (16) Add: Dep
Slide 25: EBITDA Reconciliation Footnotes
EBITDA RECONCILIATION FISCAL 2011 & FIRST FISCAL NINE MONTHS 2011 AND 2012 (1) Represents facility exit costs and employee severance and benefit costs. (2) Represents the add-back of non-cash compensation expense for restricted share awards and share options. (3) Represents the add-back of product l
Slide 26: Free Cash Flow Reconciliation
(US$mm; Fiscal years) FREE CASH FLOW RECONCILIATION 2009 2010 2011 2011 2012 Adjusted EBITDA $30 $140 $123 $116 $88 Changes in: Accounts receivable (25) (44) (23) Prepaid expenses (7) (4) (8) Inventories (88) (32) (5) Accounts payable (48) (22) (39) (5) Accrued and other liabilities (6) Other (2) (5
Slide 27: EBITDA Margin Reconciliation
(1) Have been restated to reflect discontinued operations First nine months 2009 2010 2011 2011 (1) 2012 Adjusted EBITDA $30 $140 $123 $116 $88 Net sales $1,433 $1,433 $1,650 $1,149 $1,226 % margin 2% 10% 7% 10% 7% (US$mm; Fiscal years ) EBITDA MARGIN RECONCILIATION
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