Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Q3 2016 Earnings Presentation
21 slides from Atkore's earnings presentation, Aug 2, 2016
Slide 1: Third Quarter Fiscal 2016 Earnings Presentation
PRINTING INSTRUCTIONS CHECK TOC BEFORE PRINTING Color/grayscale: Color (regardless of printing in b/w) Scale to fit paper: OFF Print hidden slides: OFF POWERPOINT OPTIONS > ADVANCED > PRINT Print in background: OFF Third Quarter Fiscal 2016 Earnings Presentation August 2016
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: Company introduction & strategic overview
Company introduction & strategic overview
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 9.0% 8.9% 10.6% 0.06 0.08 0.1 0.12 0.14 0.16 0.18 FY 2013 FY 2014 FY 2015 Adjusted EBITDA Adjusted EBITDA Margin PVC Electrical Conduit & Fittings 27% Armored Cable & Fittings 33% Other 8% Metal Electrical Conduit & Fittings 32% Atkore’s Electrical Raceway segment FY2015 net sales by
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 mechanical tube ■ Offer critical combination of metal framing, value-added fittings and construction services to industrial and electrical distributors ■ ~60% of framing us
Slide 7: Atkore's significant transformation and current strategy
6 Atkore’s significant transformation and current strategy ■ 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 strateg
Slide 8: Built on a Foundation to Perform
7 Built on a Foundation to Perform Strategic Deployment Process (“SDP”) – Core management process with long term focus and short term objectives to identify top strategic initiatives and targets in order to create the business we aspire to become Lean Daily Management (“LDM”) – Delivers customer val
Slide 9: Third quarter fiscal 2016 review
Third quarter fiscal 2016 review
Slide 10: Atkore – Third quarter fiscal 2016 highlights
9 Atkore – Third quarter fiscal 2016 highlights ■ Net sales of $396 million down 8.5%, Adjusted net sales $396 million up 2.2%* ■ Volume increase of $20 million or 5.3% ■ Net income of $21 million, up 8.3%; Adjusted net income of $26 million up 34% ■ Gross margin up 1,000 basis points, Adjusted EBIT
Slide 11: Electrical Raceway segment – Third quarter fiscal 2016 highlights
10 Electrical Raceway segment – Third quarter fiscal 2016 highlights Electrical Raceway ■Net sales of $260 million, up 3.2% ■Adjusted EBITDA of $52 million, up 68.6% ■Adjusted EBITDA margin of 20.2%, up 790 basis points ■ Customer service driving ability to support pricing benefit and margin expansi
Slide 12: Mechanical Products & Solutions segment – Third quarter fiscal 2016 highlights
11 Mechanical Products & Solutions segment – Third quarter fiscal 2016 highlights ■ Net sales of $136 million, down 24.5%, while Adjusted net sales of $136 million, up 0.7%* ■ Volume growth of 5.2% from international sales and construction services ■ Exited Fence and Sprinkler product lines in 1Q16
Slide 13: Key Balance Sheet and Cash Flow Metrics
12 Key Balance Sheet and Cash Flow Metrics ($mm) 6/24/2016 Cash and cash equivalents $131.1 Long term debt $630.2 CapEx* $13.5 Net cash from operating activities* $85.0 LTM Adjusted EBITDA $227.6 LTM Adjusted EBITDA less Capital Expenditures $204.3 Leverage Ratio Total debt / LTM Adjusted EBITDA 2.8
Slide 14: Outlook and Summary
atkore Outlook and Summary a INTERNATIONAL
Slide 15: 2016 Financial Outlook
14 2016 Financial Outlook ■ Adjusted EBITDA – $226 million to $236 million* ■ Volume growth between 4% - 8% in the fourth quarter ■ Segment Details ■ Electrical Raceway – Adjusted EBITDA $170 million to $180 million ■ MP&S – Adjusted EBITDA $76 million to $86 million ■ Capital expenditures – $22.0 m
Slide 16: Atkore's key attributes – Strong company with growth upside
15 Atkore’s key attributes – Strong company with growth upside Leading market positions and strong brands Superior customer value proposition with a compelling portfolio Significant scale providing barriers to entry Attractive growth strategy Strong platform for growth across attractive end-markets
Slide 17: Appendix
atkore Appendix a INTERNATIONAL
Slide 18: Adjusted net sales reconciliation
17 Adjusted net sales reconciliation A B C D E F G H Consolidated Atkore International Group Inc. Mechanical Products & Solutions ATKORE INTERNATIONAL GROUP INC. - ADJUSTED NET SALES RECONCILIATION Three Months Ended ($ in thousands) June 24, 2016 June 26, 2015 Change % Change Net sales $ 395,724 $
Slide 19: Adjusted earnings per share reconciliation
18 Adjusted earnings per share reconciliation A B C D E F G H Consolidated Atkore International Group Inc. ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE RECONCILIATION Three Months Ended Nine months ended (in thousands, except per share data) June 24, 2016 June 26, 2015 June 24, 2016 June 26,
Slide 20: Net Income to Adjusted EBITDA reconciliation
19 Net Income to Adjusted EBITDA reconciliation A B C D E F G H Presented below is a reconciliation of net income to Adjusted EBITDA Three Months Ended Nine months ended (in thousands) June 24, 2016 June 26, 2015 June 24, 2016 June 26, 2015 Net income $ 20,645 $ 19,058 $ 43,224 $ 22,096 Depreciation
Slide 21: Net debt / LTM Adjusted EBITDA reconciliation
20 Net debt / LTM Adjusted EBITDA reconciliation A B C D E F G H ATKORE INTERNATIONAL GROUP INC. NET DEBT/LTM ADJUSTED EBITDA RECONCILIATIONS (Unaudited) ($ in thousands) June 24, 2016 March 25, 2016 December 25, 2015 September 25, 2015 Short-term debt and current maturities of long- term debt $ 1,2
Atkore International Group — Q3 2016 Earnings Presentation on 6ix