Crane Nxt, Co. · NYSE:CXT
Crane Nxt — Q3 2024 Earnings Presentation
22 slides from Crane Nxt's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Financial Results
THIRD QUARTER 2024 FINANCIAL RESULTS November 7, 2024
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectati
Slide 3: Delivered Strong Q3 Results
DELIVERED STRONG Q3 RESULTS EXECUTING STRATEGY TO GROW AND DIVERSIFY CRANE NXT • Revenue growth of 14%, Adjusted EPS of $1.16 • Announced definitive agreement to acquire De La Rue Authentication Solutions • Acquired Tru Tag’s Smart Packaging technology • Integrating OpSec; on track to expectations •
Slide 4: De La Rue Authentication Solutions Overview
DE LA RUE AUTHENTICATION SOLUTIONS OVERVIEW Government Identification Brand Revenue Security Protection ~$130M 2024 Sales* Digital and physical Advanced security Digital tracking and technologies that features and secure physical security enable the traceability substrates to protect labels to prote
Slide 5: Closed Acquisition of Tru Tag Smart Packaging
CLOSED ACQUISITION OF TRU TAG SMART PACKAGING Continue to follow disciplined approach to M&A Proprietary secure marker Focused on technology Market solutions that secure, detect and authenticate Leading position in niche Company end markets • Patented taggant with unique surface microstructure added
Slide 6: Continuing to Build and Diversify the NXT Portfolio
CONTINUING TO BUILD AND DIVERSIFY THE NXT PORTFOLIO Providing trusted technology solutions to secure, detect and authenticate what matters most Security & Authentication Technologies Crane Payment Innovations Reportable Segments 2024 Sales* 2024 Sales* ~$620M ~$870M Closing 1H25 Businesses Authentic
Slide 7: Q3 2024 Results Summary
Q3 2024 RESULTS SUMMARY Q3 2024 Q3 2023 $ Millions, except • Core sales increase ~5%, driven per-share amounts GAAP Adjusted* GAAP Adjusted* by strength in international Sales $403 $403 $353 $353 Currency Segment Operating Profit 94 109 92 101 • Adjusted segment operating margin decline due to dilut
Slide 8: Crane Payment Innovations – Q3 Results
CRANE PAYMENT INNOVATIONS – Q3 RESULTS GAAP Adjusted* $ Millions Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Sales $ 225 $ 222 2% $ 225 $ 222 2% Segment Operating Profit 65 60 8% 70 65 7% Segment Operating Margin 28.7% 26.9% 180bps 31.1% 29.4% 170bps Backlog 133 232 (42%) 133 232 (42%) Comments: Q
Slide 9: Security & Authentication Technologies – Q3 Results
SECURITY & AUTHENTICATION TECHNOLOGIES – Q3 RESULTS GAAP Adjusted* $ Millions Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Sales $ 179 $ 131 +36% $ 179 $ 131 +36% Segment Operating Profit 29 33 (11%) 39 36 8% Segment Operating Margin 16.4% 25.0% (860bps) 21.9% 27.6% (570 bps) Backlog 351 223 +57% 3
Slide 10: Strong Balance Sheet and Capital Structure
STRONG BALANCE SHEET AND CAPITAL STRUCTURE Net debt to EBITDA of ~1.7x Estimated Net debt to EBITDA of ~2.3x (Sept. 30, 2024) (after De La Rue Authentication close in 1H25) ~$1,155M ~$800M $205M $150M Revolver Revolver $400M ~$670M $102M Term Loan Term Loan ~$515M $350M $350M 4.2% $495M 4.2% notes d
Slide 11: 2024 Full Year Guidance Update
2024 FULL YEAR GUIDANCE UPDATE Prior Updated Guidance Guidance • Increasing sales guidance driven by strength in Currency Crane NXT Sales Growth* +5% to +8% +6% to +8% CPI Core Sales Growth -3% to +2% -2% to -1% • OpSec on track for ~$80M to $90M in sales as expected Currency Core Sales Growth +3% t
Slide 12: US Currency Program Update
US CURRENCY PROGRAM UPDATE PREPARING FOR LAUNCH OF NEW $10 NOTE IN 2026 Current Technology Supplied • High confidence that new notes will have increased by Crane Currency Launch of anticounterfeiting security features Paper Micro-Optics New Design* • Expect announcement from US Government on design
Slide 13: Building a Premier Industrial Technology Company
BUILDING A PREMIER INDUSTRIAL TECHNOLOGY COMPANY • Strong Q3 performance, ~14% revenue growth and ~5% core revenue growth Secure Detect • Utilizing CBS to drive operational performance and integrate OpSec acquisition • Executing on strategy to build leadership position in higher growth, adjacent end
Slide 14: Q&A
Q&A CRANE
Slide 15: Appendix
APPENDIX CRANE ND T
Slide 16: Non-GAAP Explanations
NON-GAAP EXPLANATIONS Crane NXT reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow, and
Slide 17: Non-GAAP Explanations
NON-GAAP EXPLANATIONS The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • "Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items
Slide 18: Non-GAAP Explanations
NON-GAAP EXPLANATIONS The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • “Free cash flow,” “Adjusted free cash flow” and "Adjusted free cash flow conversion” provide su
Slide 19: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures Three Months Ended September 30, 2024 2023 (unaudited, in millions except per share data) Adjusted Operating Profit and Adjusted Operating Profit Margin $ Per Share $ Per Share Net sales (GAAP) $ 403.5 $ 352.9 Operating profi
Slide 20: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment, Third Quarter (unaudited, in millions) Security and Crane Payment Authentication Three Months Ended September 30, 2024 Innovations Technologies Corporate Total Company Net sales $ 224.9 $ 178.6 $ — $ 403.5 Operati
Slide 21: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Free Cash Flow, Net Leverage Ratio (unaudited, in millions) CRANE NXT, CO. AND SUBSIDIARIES Free Cash Flow and Adjusted Free Cash Flow (unaudited, in millions) Three Months Ended Nine Months Ended September 30, September 30, Cash Flow Items 2024 2023 20
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