Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Deutsche Bank Leveraged Finance Conference 2016
22 slides from Atkore's conference presentation, Sep 27, 2016
Slide 1: Deutsche Bank Leveraged Finance Conference
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Slide 2: Cautionary statements
1 Cautionary statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact included in this presentation are forward-looking statements. For
Slide 3: Who are we? Atkore is all around you
2 Who are we? Atkore is all around you Cable Tray, Wire Basket Tray & Cable Ladder Armored Cable, Luminary Cable & Fittings Metal Framing & Fittings Flexible Electrical Conduit and Liquidtight Flexible Metal Conduit & Fittings PVC Electrical Conduit & Fittings Metal Electrical Conduit & Fittings In-
Slide 4: Leading Electrical Raceway and Mechanical Products & Solutions provider
3 OEM 18% Int'l 7% Other 5% U.S. Construction 70% Leading Electrical Raceway and Mechanical Products & Solutions provider ■ #1 or #2 market positions in most of our products1 ■ Offer must-stock products to distribution and OEM customers via single integrated platform ■ Established reputation as an i
Slide 5: Atkore's Electrical Raceway segment
4 $67 $86 $107 $162 9.0% 8.9% 10.6% 16.7% 0.06 0.08 0.1 0.12 0.14 0.16 0.18 FY 2013 FY 2014 FY 2015 LTM 6/2016 Adjusted EBITDA ($mm) Adjusted EBITDA Margin PVC Electrical Conduit & Fittings 27% Armored Cable & Fittings 33% Other 8% Metal Electrical Conduit & Fittings 32% Atkore’s Electrical Raceway
Slide 6: Atkore's Mechanical Products & Solutions segment
5 Metal Framing and Fittings 32% Mechanical Pipe 53% Other 15% ■ Comprehensive offering of metal framing and in-line galvanized tubular products ■ Offer critical combination of metal framing, value-added fittings and construction services to industrial and electrical distributors ■ ~60% of framing u
Slide 7: Atkore's significant transformation
6 Atkore’s significant transformation ■ Limited strategic vision ■ Little customer coordination ■ Underperforming leadership ■ No growth or M&A strategy 2011 2011 - 2015 Atkore strategy ■ Leading market positions/brands ■ Upgraded over 90% of leadership ■ Developed clear strategy ■ Implemented Atkor
Slide 8: The foundation for our improvement
7 The foundation for our improvement…. ■ Market Intelligence and analysis ■ Portfolio analysis ■ Business development ■ “Evergreen” strategy ■ Product management ■ Culture of innovation ■ Talent assessment and acquisition ■ Talent engagement and development ■ Aligned incentives and compensation ■ Re
Slide 9: Where are we going
8 Where are we going…. Continue… to drive growth with ABS Leverage... the Electrical Raceway portfolio Capitalize... on the markets we serve Expand... into high growth segments Innovate… with new product development Transform... with an active M&A process and pipeline
Slide 10: Financial overview
atkore Financial overview a INTERNATIONAL
Slide 11: Proven growth with improving top line and strong conversion of sales into cash
10 $112 $127 $164 $228 9% 8% 11% 15% FY2013 FY2014 FY2015 LTM 6/24/16 Adjusted EBITDA % Margin $740 $968 $1,006 $968 $538 $543 $546 $528 $1,277 $1,510 $1,551 $1,496 FY2013 FY2014 FY2015 LTM 6/24/2016 Electrical Raceway MP&S Proven growth with improving top line and strong conversion of sales into ca
Slide 12: Strong Balance Sheet and Cash Flow
11 Strong Balance Sheet and Cash Flow 1Defined as total debt less cash and cash equivalents. 3.5x 2.8x 2.4x 2.2x LTM 9/25/2015 LTM 12/25/2015 LTM 3/25/2016 LTM 6/24/2016 Net Debt1 / Adjusted EBITDA $97 $102 $137 $208 87% 81% 84% 91% FY2013 FY2014 FY2015 LTM 6/24/16 Adjusted EBITDA less capex % of Ad
Slide 13: Atkore summary
atkore summary a INTERNATIONAL
Slide 14: Atkore's key attributes – Strong company with growth upside
13 Atkore’s key attributes – Strong company with growth upside Leading market positions and strong brands Superior customer value proposition with a compelling portfolio Significant scale providing barriers to entry Attractive growth strategy Strong platform for growth across attractive end-markets
Slide 15: Appendix
atkore Appendix a INTERNATIONAL
Slide 16: 3rd Quarter and Nine Month Financial Information
15 3rd Quarter and Nine Month Financial Information P&L and Cash Flow 4th Quarter $mm FY2016 FY2015 $ % FY2016 FY2015 $ % FY2015 Net Sales 395.7$ 432.4$ (36.6)$ (8.5%) 1,107.1$ 1,291.4$ (184.2)$ (14.3%) 437.8$ Cost of Sales 284.2 353.8 (69.6) (19.7%) 831.8 1,089.6 (257.8) (23.7%) 366.8 Gross Profit
Slide 17: Capitalization
16 Capitalization ($mm) 6/24/2016 Maturities Rate Cash and cash equivalents $131 ABL credit facility — Oct. 2018 L+1501 First lien term loan 411 Apr. 2021 L+3502 Second lien term loan 229 Oct. 2021 L+6752 Other debt - Apr. 2017 Various Gross debt $640 (Debt fees) (9) Total debt $631 LTM Adjusted EBI
Slide 18: Adjusted net sales reconciliation
17 Fiscal year ended 3 months ended 9 months ended 12 months ended ($mm) Sept. 27, 2013 Sept. 26, 2014 Sept. 25, 2015 Jun 26, 2015 Sep 25, 2015 Jun 24, 2016 Jun 26, 2015 Jun 24, 2016 Jun 26, 2015 Jun 24, 2016 Net sales $1,476 $1,703 $1,729 $432 $438 $396 $1,291 $1,107 $1,746 $1,545 Impact of Fence a
Slide 19: Adjusted EBITDA reconciliation
18 Fiscal year ended 3 months ended 9 months ended 12 months ended ($mm) Sept. 30, 20111 Sept. 28, 2012 Sept. 27, 2013 Sept. 26, 2014 Sept. 25, 2015 Jun 26, 2015 Jun 24, 2016 Jun 26, 2015 Jun 24, 2016 Jun 26, 2015 Jun 24, 2016 Net income (loss) $(38.4) $2.0 $(61.2) $(73.9) $(5.0) $19.0 $20.6 $22.1 4
Slide 20: Adjusted EBITDA reconciliation
19 3 months ended 12 months ended ($mm) Sept. 25, 2015 Dec. 25, 2015 Mar. 25, 2016 Dec 25, 2015 Mar. 25, 2016 Net (loss) income $(27.1) $8.6 $14.0 $6.4 $14.6 Loss from discontinued operations, net of tax - - - - - Depreciation and amortization 16.1 13.5 13.2 58.2 57.2 (Gain) on extinguishment of deb
Slide 21: Adjusted EBITDA reconciliation (cont'd)
20 Adjusted EBITDA reconciliation (cont’d) a) Restructuring amounts represent exit or disposal costs including termination benefits and facility closure costs. Impairment amounts represent write-downs of goodwill, intangible assets and/or long-lived assets b) Represents pension costs in excess of ca
Slide 22: Net debt / LTM Adjusted EBITDA reconciliation
21 Net debt / LTM Adjusted EBITDA reconciliation A B C D E F G H $mm Jun 24, 2016 Mar 25, 2016 Dec 25, 2015 Sep 25, 2015 Short-term debt and current maturities of long-term debt 1.3$ 1.9$ 2.5$ 2.9$ Long-Term Debt 630.2 630.4 649.2 649.3 Total Debt 631.5 632.3 651.7 652.2 Less cash and cash equivalen
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