Slide 1: Second Fiscal Quarter 2018 Financial Results
Second Fiscal Quarter 2018 Financial Results
Slide 2: Management Presenters
Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer and Secretary Mike Higgins Director, Investor Relations & Business Strategy
Slide 3: Safe Harbor and Non-GAAP Financial Metrics
Safe Harbor and Non-GAAP Financial Metrics Certain statements in this presentation may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include,
Slide 4: Q2 FY 2018 Highlights
Double-digit growth in both pipe and Allied products drove net sales growth of 11%. 1 Q2 FY 2018 Highlights 2 3 Margin pressure in the quarter was primarily due to increased raw material and operational costs. Domestic net sales grew 13% driven by solid demand in our core domestic construction marke
Slide 5: Q2 FY 2018 Financial Performance
Q2 FY 2018 Financial Performance Favorable demand in the period offset by higher raw material and operational costs - 150 bps (USD, in millions) Adjusted EBITDA + 11.2% Domestic Markets + Construction +14% + Non-Residential +13% + Residential +17% + Infrastructure +9% + Agriculture +8% + Pipe +14% +
Slide 6: Free Cash Flow Performance
Free Cash Flow Performance % of Sales 2.7% 3.5% All figures in USD, mm Net Debt³ FY 2018 FY 2017 Change Adjusted EBITDA $127 $137 $(10) Working Capital(2) $(70) $(61) $(9) Cash Tax $(22) $(3) $(19) Cash Interest $(9) $(9) $0 Restatement related costs $(3) $(19) $16 Other $5 $1 $4 Cash flow from oper
Slide 7: Market FY2018 Outlook
Market FY2018 Outlook Comments Domestic Construction End Markets End market growth intact Agriculture End Market Strong Q2 performance, 2H performance contingent on weather International End Market Modest improvement expected in Mexico; Canada expected to be flat due to weaker Ag market, offsetting
Slide 8: FY 2018 Financial Outlook
FY 2018 Financial Outlook Key Metric FY 2017 FY 2018 Y-o-Y Change Net Sales (in Billions) $1,257 $1,275 - $1,325 Up 1% to 5% Adj. EBITDA (in Millions) $193 $195 - $210 Up 1% to 9% Adj. EBITDA Margin 15.4% 15.3% - 15.8% (10) to +40 basis points Fiscal Year 2018 Expectations
Slide 9: Q&A Session
Q&A Session
Slide 10: Closing Remarks
Steady demand in core domestic construction markets expected to continue. 1 Closing Remarks 2 3 Focused on execution and fundamentals as well as driving SPP initiatives to improve consistency and profitability. Positioned for continued above-market growth this year due to conversion strategies and s
Slide 11: Appendix
Appendix
Slide 12: Fiscal Year-to-Date Financial Performance
Fiscal Year-to-Date Financial Performance Domestic demand driving strong revenue growth, offset by weakness in International markets - 230 bps (USD, in millions) Adjusted EBITDA + 5.7% Domestic Markets + Construction +9% + Non-Residential +9% + Residential +12% + Infrastructure +3% − Agriculture - 2
Slide 13: General and Administrative Expenses
General and Administrative Expenses Q2 FY18 Q2 FY17 $ Var. YTD FY18 YTD FY17 $ Var. G&A expense, as reported $23.9 $21.2 $2.7 $50.6 $55.7 $(5.1) EBITDA adjustments related to G&A expense: Stock-based compensation expense 1.7 (2.7) 4.4 3.3 5.9 (2.6) ESOP deferred stock-based compensation 0.3 0.3 _ 0.
Slide 14: Capital Structure and Deployment Priorities
Capital Structure and Deployment Priorities Cash and Leverage Cash Flow from Operations Sources Uses Top priorities for FY2018 include: supporting growth in certain diameters and geographies, productivity and efficiency initiatives (SPP) Focus on M&A to leverage our national footprint and sales and
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ___________________________ EBITDA as net income before interest, taxes, depreciation and amortization Adjusted EBITDA as EBITDA before stock based compensation expense, non-cash charges and certain other expenses Three Months Ended Six Months Ended September 30, Septe