Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Q1 2018 Earnings Presentation
16 slides from Valmont Industries's earnings presentation, Apr 19, 2018
Slide 1: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that
Slide 2: First Quarter Financial Summary
First Quarter Financial Summary 4 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation * See reconciliation of GAAP operating income and diluted EPS to adjusted (non-GAAP) figures at the end of this presentation. NET SALES U.S. Dollars in millions except per share amounts 2018 2017
Slide 3: Financial Highlights – Operating Income GAAP
Financial Highlights – Operating Income GAAP 5 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation U.S. Dollars in millions Operating Income 1Q 2018 Operating Income 1Q 2017 Increase (Decrease) Operating Income % 1Q 2018 Operating Income % 1Q 2017 Engineered Support Structures $6.9
Slide 4: Financial Highlights – Operating Income Adjusted
Financial Highlights – Operating Income Adjusted 6 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation * See reconciliation of GAAP operating income and diluted EPS to adjusted (non-GAAP) figures at the end of this presentation. U.S. Dollars in millions Adjusted Operating Income 1Q
Slide 5: Engineered Support Structures Segment
Engineered Support Structures Segment 7 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation 2017 Revenue1 $193.1 Volume 6.5 Pricing/Mix 3.6 Acquisitions 3.7 Currency Translation 9.0 2018 Revenue1 $215.9 North America lighting sales improved from higher volumes in transportation and
Slide 6: Utility Support Structures Segment
Utility Support Structures Segment 8 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation See reconciliation of GAAP operating income and diluted EPS to adjusted (non-GAAP) figures at the end of this presentation. 1 Net sales after intersegment eliminations 2017 Revenue1 $200.1 Volu
Slide 7: Coatings Segment
Coatings Segment 9 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation See reconciliation of GAAP operating income and diluted EPS to adjusted (non-GAAP) figures at the end of this presentation. 1 Net sales after intersegment eliminations 2017 Revenue1 $59.3 Volume 2.9 Pricing/Mix
Slide 8: Irrigation Segment
Irrigation Segment 10 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation See reconciliation of GAAP operating income and diluted EPS to adjusted (non-GAAP) figures at the end of this presentation. 1 Net sales after intersegment eliminations 2017 Revenue1 $165.4 Volume 15.2 Pricing
Slide 9: Free Cash Flow and Conversion – 2018 & 2017
Free Cash Flow and Conversion – 2018 & 2017 11 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation 2018 2017 Operating Cash Flow 33.0 23.4 Capital Expenditures (16.2) (14.2) Free Cash Flows $16.8 $9.2 Adjusted Net Earnings * $42.6 $39.0 Free Cash Flows to Adj. Net Earnings 0.4 0.2
Slide 10: Cash and Debt Highlights
Cash and Debt Highlights 12 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation 1Q 2018 Actual Free Cash Flow $17M YTD Cash At 03/31/2018 $480M ($404M Ex. US) Total Debt $755M Debt/Adjusted EBITDA* 2.13X Credit Rating S&P BBB+ Stable Moody’s Baa3 Stable * See the Company’s calculat
Slide 11: Appendix
ApPENDIX 13 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation
Slide 12: Calculation of Adjusted EBITDA & Leverage Ratio
Calculation of Adjusted EBITDA & Leverage Ratio 14 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation Last 4 fiscal quarters (April 2, 2017 to March 31, 2018) Certain of our debt agreements contain covenants that require us to maintain certain coverage ratios. Our Debt/Adjusted EB
Slide 13: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results 15 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation First Quarter Ended March 31, 2018 Diluted earnings per share Net earnings attributable to Valmont Industries, Inc. - as reported 39,281 $ 1.72 $ Restruct
Slide 14: Segment Operating Income Reconciliation
Summary of Effect of Significant Non-recurring Items on Reported Results 16 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation Segment Operating Income Reconciliation Engineered Infrastructure Products Utility Support Structures Coatings Irrigation Other/ Corporate Operating incom
Slide 15: Operating Income Reconciliation
Summary of Effect of Significant Non-recurring Items on Reported Results 17 April 19, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation Operating Income Reconciliation First Quarter Ended March 31, 2018 Operating income - as reported 63,960 $ Restructuring expenses - before tax 4,400 Adjus
Slide 16: Operating Income Reconciliation
Summary of Effect of Significant Non-recurring Items on Reported Results First Quarter Ended Operating Income Reconciliation March 31, 2018 Operating income - as reported "s 63,960 Restructuring expenses - before tax 4,400 ‘Adjusted Operating Income 68,360 Net Sales " 698,684 Operating Income as a %