Atkore Inc. · NYSE:ATKR
Atkore — Q1 2020 Earnings Presentation
15 slides from Atkore's earnings presentation, Feb 4, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation February 4, 2020
Slide 2: Cautionary Statements
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. Forwa
Slide 3: Q1 2020 Highlights and Financial Summary
Q1 2020 Highlights and Financial Summary Delivered Net Income of $35M Q1 Q1 Y/Y ($’s in millions) 2020 2019 Change Increased Adjusted EBITDA by 11%, or $7.7M in year over year improvement Net Sales $447.4 $452.0 (1.0%) Operating Income $52.5 $45.7 15.0% Reduced Net Debt/TTM Adjusted EBITDA to 2.1x N
Slide 4: Consolidated Atkore Q1 2020 Bridges
Consolidated Atkore Q1 2020 Bridges Q1 Net Sales Bridge Net Sales Growth Volume/Mix +3.1% $14 $452M $12 $447M Price (6.6%) $1 $30 Acquisitions/Divestitures +2.7% FX/Other (0.2%) Total (1.0%) 2019 Volume/Mix Price M&A FX/Other 2020 Q1 Adjusted EBITDA Bridge Highlights $2 $0 $78M ▪ 3% volume growth wi
Slide 5: Electrical Raceway Q1 Highlights
Electrical Raceway Q1 Highlights Volume growth of 2% led by PVC products Q1 Q1 Y/Y 2020 2019 Change ($’s in millions) Launched three new product lines of diecast Net Sales $341.4 $343.4 (0.6%) fittings Adjusted EBITDA $70.2 $68.5 2.5% Continue to see above market growth from our Adjusted EBITDA 20.6
Slide 6: Mechanical Products & Solutions Q1 Highlights
Mechanical Products & Solutions Q1 Highlights Strong volume growth of ~7% led by continued Q1 Q1 Y/Y ramp of large renewable projects and solid 2020 2019 Change ($’s in millions) execution across the portfolio Net Sales $106.7 $108.8 (2.0%) Adjusted EBITDA margins increased 560 bps Adjusted EBITDA $
Slide 7: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Leverage Ratio(2) ($’s in millions) 12/27/2019 Cash and cash equivalents $164.1 Reduced by 0.8x 2.9 2.9 Total Debt $845.2 2.8 Net Debt $681.1 2.6 YTD Net cash from operating activities $52.2 YTD Capital expenditures $9.8 2.2 YTD Free cash flow(1) $42.4
Slide 8: Financial Outlook Summary
Financial Outlook Summary Changes to Q2 2020 FY 2020 FY 2020 Electrical Raceway Volume +1 to 2% - Segment Adjusted EBITDA* $72 - $77M $308 - $318M +$5M / +$5M Volume +1 to 3% - Mechanical Products & Solutions Segment Adjusted EBITDA* $15 - $19M $70 - $75M - Adjusted EBITDA* $80 - $85M $340 - $350M +
Slide 9: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 10: Segment Information
Segment Information Three months ended December 27, 2019 December 28, 2018 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 341,376 $ 70,193 20.6 % $ 343,406 $ 68,489 19.9 % Mechanical Products & Solutions 106,660 1
Slide 11: Adjusted Earnings Per Share Reconciliation
Adjusted Earnings Per Share Reconciliation Consolidated Atkore International Group Inc. Three months ended December 27, December 28, (in thousands, except per share data) 2019 2018 Net income $ 34,790 $ 26,949 Stock-based compensation 3,123 2,982 Intangible asset amortization 8,113 8,214 Other (a) 2
Slide 12: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. Three months ended December 27, December 28, (in thousands) 2019 2018 Net income $ 34,790 $ 26,949 Interest expense, net 10,620 12,160 Income tax expense 7,340 8,154 Depreciation and amortization 18,730 18,021
Slide 13: Trailing Twelve Month Adjusted EBITDA Reconciliation
Trailing Twelve Month Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. TTM Three months ended December 27, December 27, September 30, (in thousands) 2019 2019 2019 June 28, 2019 March 29, 2019 Net income $ 146,892 $ 34,790 $ 45,997 $ 36,550 $ 29,555 Interest expense, net 4
Slide 14: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. December September March 29, December 28, September ($ in thousands) 27, 2019 30, 2019 June 28, 2019 2019 2018 30, 2018 Short-term debt and current maturities of long-term debt $ — $ — $ — $ — $ 26,561 $ 26,561 Lo
Slide 15: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore International Group Inc. Three months ended (in thousands) December 27, 2019 December 28, 2018 Net cash provided by operating activities $ 52,173 $ 40,277 Capital Expenditures (9,809) (6,875) Free Cash Flow $ 42,364 $ 33,402 15