Atkore Inc. · NYSE:ATKR
Atkore — Q2 2024 Earnings Presentation
20 slides from Atkore's earnings presentation, May 7, 2024
Slide 1: Second Quarter 2024 Earnings Presentation and Business Update
Second Quarter 2024 Earnings Presentation and Business Update May 7, 2024 © Atkore
Slide 2: Cautionary Statements
Cautionary Statements This presentation is provided for general informational purposes only and it does not include every item which may be of interest, nor does it purport to present full and fair disclosure with respect to Atkore Inc. (the “Company” or “Atkore”) or its operational and financial in
Slide 3: Solid Results in Q2 2024
Solid Results in Q2 2024 Net Sales Net Income Adjusted EBITDA1 Diluted EPS Adjusted Diluted EPS1 $M $M $M $/share $/share -11% -16% -23% -15% 983 233 -21% 346 5.08 5.39 896 4.87 793 276 4.31 174 3.67 4.08 640 212 125 138 193 456 2.58 2.79 87 39 0.80 0.99 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2
Slide 4: Q2 Income Statement Summary
Q2 Income Statement Summary Y/Y Y/Y % ($’s in millions) Q2 2024 Q2 2023 Change Change Net Sales $792.9 $895.9 ($103.0) (11.5%) Operating Income $178.8 $239.9 ($61.1) (25.5%) Net Income $138.0 $174.2 ($36.2) (20.8%) Adjusted EBITDA1 $211.9 $276.0 ($64.1) (23.2%) Adjusted EBITDA Margin2 26.7% 30.8% (4
Slide 5: Consolidated Atkore Bridges
Consolidated Atkore Bridges Q2 Net Sales Bridge Net Sales % Change 2024 $896M $8 $2 $793M $86 $11 Volume/Mix (0.8%) Price (9.5%) Solar Credit (1.2%) Total (11.5%) 2023 Volume/Mix Price Solar Credit Other1 2024 Adjusted EBITDA Bridge2 Adjusted Diluted EPS Bridge2 $276M $5 $4.87 $0.27 $0.07 $4.08 $21
Slide 6: Key Product Area Trends & Review
Key Product Area Trends & Review FY 2024 YTD Net Sales by Volume/Mix % Product Area Review & Key Product Area1 FY 2024 YTD vs. Key Comments FY 2023 YTD PVC related product volume up double digits year to date due to strong Plastic Pipe, performance from our non-electrical PVC products 31% + MSD% Con
Slide 7: Segment Results
Segment Results Electrical Safety & Infrastructure Y/Y ($’s in millions) Y/Y ($’s in millions) Q2 2024 Q2 2023 Q2 2024 Q2 2023 Change Change Net Sales $590.8 $681.0 (13.2%) Net Sales $202.4 $215.1 (5.9%) Adjusted EBITDA $195.8 $256.9 (23.8%) Adjusted EBITDA $25.5 $33.2 (23.1%) Adjusted EBITDA Margin
Slide 8: Cash & Balance Sheet Summary
Cash & Balance Sheet Summary Atkore’s strong balance sheet enables continued execution of our capital deployment model with cash generated by the business. FY24 YTD Cash Bridge Debt Maturity Profile $M $M $245 $74 $388M $400 $156 $368M $373 $12 $23 $325 FY23 YE Cash Flow Capital Stock Dividend Net O
Slide 9: Update on Category Expansion Initiatives
Update on Category Expansion Initiatives Status update & timing of financial benefits related to key category expansion initiatives FY 2024 Current HDPE Power & HDPE-related products expected to be a strong future growth driver given Estimate vs. Original the significant secular tailwinds Guidance T
Slide 10: Updated FY 2024 Outlook
Updated FY 2024 Outlook Expect mid to high single digit percentage volume growth for FY 2024. Amending FY 2024 Outlook to reflect impacts of certain growth-related initiatives. Outlook Summary Outlook Items for Q3 2024 Outlook FY 2024 Outlook Updates to FY 2024 Outlook Consolidated Atkore Net Sales
Slide 11: Key Bridging Assumptions FY 2024 vs. FY 2023
Key Bridging Assumptions FY 2024 vs. FY 2023 Current bridging assumptions reflect updated projections from our growth initiatives related to HDPE and Solar Torque Tubes. Initial Bridging Assumptions – FY 2024 vs. FY 2023 Current Bridging Assumptions – FY 2024 vs. FY 2023 Net Sales Adjusted EBITDA1 N
Slide 12: Appendix
Appendix © Atkore 12
Slide 13: Segment Information
Segment Information Three months ended March 29, 2024 March 31, 2023 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical $ 590,820 $ 195,752 33.1 % $ 680,965 $ 256,883 37.7 % Safety & Infrastructure 202,419 25,529 12.6 % 215,054
Slide 14: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Three months ended March 29, March 31, March 25, March 26, March 27, (in thousands, except per share data) 2024 2023 2022 2021 2020 Net income $ 137,955 $ 174,194 $ 233,477 $ 124,933 $ 39,193 Stock-b
Slide 15: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended March 29, March 31, March 25, March 26, March 27, (in thousands) 2024 2023 2022 2021 2020 Net income $ 137,955 $ 174,194 $ 233,477 $ 124,933 $ 39,193 Interest expense, net 8,321 8,475 7,514 8,416 10,564 Income t
Slide 16: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore Inc. TTM Three months ended March 29, March 29, December September June 30, (in thousands) 2024 2024 29, 2023 30, 2023 2023 Net income $ 618,549 $ 137,955 $ 138,381 $ 140,925 $ 201,288 Interest expense, net 33,384 8,321 7,793 8,588 8,682 Inco
Slide 17: Total Debt to Net Debt
Total Debt to Net Debt Consolidated Atkore Inc. March 29, December September June 30, March 31, December (in thousands) 2024 29, 2023 30, 2023 2023 2023 30, 2022 Long-term debt $ 763,762 $ 763,225 $ 762,687 $ 762,149 $ 761,612 $ 761,074 Total debt 763,762 763,225 762,687 762,149 761,612 761,074 Less
Slide 18: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore Inc. Six months ended March 29, March 31, (in thousands) 2024 2023 Net cash provided by operating activities $ 245,323 $ 403,396 Capital expenditures (73,546) (72,690) Free cash flow $ 171,777 $ 330,706 © Atkore 18
Slide 19: Glossary of Terms
Glossary of Terms Abbreviations listed in alphanumeric order Abbreviation Description Abbreviation Description 1H First Half LDD% Low Double Digit Percentage 2H Second Half LSD% Low Single Digit Percentage ABS Atkore Business System M Million Adj. Adjusted M&A Mergers & Acquisitions AI Artificial In
Slide 20: atkore.com
A Atkore A Atkore atkore.com BUILDING BETTER TOGETHER 20