Acco Brands Corporation · NYSE:ACCO
Acco Brands — Q1 2021 Earnings Presentation
17 slides from Acco Brands's earnings presentation, Apr 28, 2021
Slide 1: ACCO Brands 1Q Earnings Conference Call – April 28, 2021
ACCO Brands 1Q Earnings Conference Call – April 28, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, operating strategies and similar matters, operations, results of operations, liquidity and financi
Slide 3: Reg. G – Non-GAAP Financial Measures
Reg. G – Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. We explain how we calculate and use each of these non-GAAP measures and provide a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financia
Slide 4: 1Q 2021 Results Summary
1Q 2021 Results Summary • PowerA acquisition added $63M Sales up 7% to $411M • EMEA strong performance continued • COVID-19 impacts, especially North America and International Comparable sales down 14% to $332M vs. • Growth in TruSens® air purifiers, DIY tools, Kensington® computer pre-COVID-19 1Q 2
Slide 5: 1Q 2021 Segment Results Summary
1Q 2021 Segment Results Summary • PowerA acquisition added $52M • Commercial office product sales down significantly from COVID- North America sales up 13% 19 impacts Comparable sales down 19% • Operating loss from higher amortization and inventory step-up Operating loss $(0.7M) costs for PowerA, hi
Slide 6: 2021 Segment Results
2021 Segment Results Y/Y Segment Financial Metrics 1Q21 1Q20 $ in millions Change ACCO Brands North America Sales $188.8 $167.8 12.5% Comparable Sales (18.8)% 4.7% Adjusted Operating Income $11.2 $10.9 2.8% Adjusted Operating Margin 5.9% 6.5% (60) bps ACCO Brands EMEA Sales $156.9 $127.5 23.1% Compa
Slide 7: 1Q 2021 Margin Reconciliation
1Q 2021 Margin Reconciliation 1Q 2021 Change vs. Items of Significant Impact Adjusted Prior Year Bps on Adjusted Results (non-GAAP) Adjusted Gross Profit $117.9M $5.7M Pricing/Product Cost/Mix, net (210) Lower Obsolete Inventory Accruals 70 Gross Margin 28.7% (50) bps Cost reductions 60 FX 20 Acquis
Slide 8: 2021 Cash Flow
2021 Cash Flow Better $ in millions* 1Q ‘21 1Q ’20 (Worse) vs 2020 Adjusted EBITDA 41 37 4 Interest (7) (3) (4) Accelerated Payment of Bond Interest (6) -- (6) Taxes (8) (10) 2 Capital expenditures (4) (7) 3 Working capital and other (52) (41) (11) Pension (7) (6) (1) Cash restructuring costs (3) (3
Slide 9: Capital Structure
Capital Structure Capital structure as of March 31, 2021 No maturities until 2026 ($ in millions) Facility Balance1 Interest Rate Methodology Rate $600M multicurrency revolver 219 LIBOR + 225 bps, 37.5 bps unused 2.43% USD Term Loan A 93 U.S. LIBOR + 225 bps 2.45% EUR Term Loan A 274 Euro LIBOR
Slide 10: Executing On Capital Allocation Strategy
Executing On Capital Allocation Strategy • Disciplined capital allocation strategy • Near-term plan to deploy FCF to fund dividend and reduce debt* Capital • Long-term plan to deploy FCF to fund dividend, reduce debt, Allocation repurchase shares, and make acquisitions Debt • 1Q 2021 bank pro forma
Slide 11: 2Q 2021 Outlook
2Q 2021 Outlook 2Q 2021 Outlook1 Net Sales $460M - $490M Adjusted EPS $0.25 to $0.30 For the full year, we expect to generate FCF of at least $135M ($165M in cash from operations minus approximately $30M in capex). Beginning with the first quarter of 2021, the Company changed the way it calculat
Slide 12: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Our non-GAAP financial measures include the following: Comparable Net Sales: Represents net sales excluding the impact of acquisitions with current-period foreign operation sales translated at prior-year currency rates. We believe comparable net sales are useful to
Slide 13: ACCO Brands Corporation and Subsidiaries
ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (U (In millions, except per share data) udited) ‘The following tables set forth a reconciliation of certain Consolidated Statements of Operations information reported in accordance with GAAP to adjusted
Slide 14: ACCO Brands Corporation and Subsidiaries
ACCO Brands Corporation and Subsidiaries Reconciliation of Net (Loss) Income to Adjusted EBITDA (Unaudited) (In millions) ‘The following table sets forth a reconciliation of net income reported in accordance with GAAP to Adjusted EBITDA. ‘Three Months Ended March 31, 2021 2020 % Change Net (loss) in
Slide 15: Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information
Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net (Loss) Income to Adjusted EBITDA (Unaudited) Represents the amortization of step-up in the value of inventory associated with the PowerA acquisition. Represents transaction and integration expenses associated with the acquisit
Slide 16: ACCO Brands Corporation and Subsidiaries
ACCO Brands Corporation and Subsidiaries Supplemental Business Segment Information and Reconciliation (Unaudited) 2021 2020 Changes “Adjusted ‘Adjusted Reported Adjusted Operating Reported Adjusted Operating Adjusted Adjusted Operating, Operating Income Operating, Operating Income Operating Operatin
Slide 17: Supplemental Net Sales Change Analysis
QI 2021: ACCO Brands North America ACCO Brands EMEA ACCO Brands International Total ACCO Brands Corporation and Subsidiaries Supplemental Net Sales Change Analysis (Unaudited) ‘% Change - Net Sales ‘$ Change - Net Sales (in millions) GAAP ‘Non-GAAP, GAAP Non-GAAP Comparable Comparable Net Sales Net