Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Holdings — Deutsche Bank Leveraged Finance Conference 2013
23 slides from Atkore's conference presentation, Oct 1, 2013
Slide 1: Deutsche Bank Leveraged Finance Conference
1 Deutsche Bank Leveraged Finance Conference John Williamson, President and CEO Jim Mallak, Chief Financial Officer Chuck Cohrs, Treasurer October 1, 2013
Slide 2: Disclaimer
2 Disclaimer This presentation and its contents are confidential, proprietary information and may not be reproduced or otherwise disseminated in whole or in part without the Company’s prior written consent. This presentation contains statements that are not historical facts. Such statements are or m
Slide 3: Atkore International: Focus, Products, Brands, Segments
3 Focus • Mechanical tube • Fence pipe/barbed tape • Fire sprinkler pipe / system fabrication Key Products Brands Segments Pipe & Tube • AC/MC cables • Liquid-tight and flexible conduit • Pre-wired modular wiring systems • Cable tray/ladder • Cable trunking • Metal framing & support • Wire basket •
Slide 4: Global Pipe Tube and Conduit Market Position
4 #1 position in steel pipe Top 4 comprise ~90% of the markets we serve #1 position in flexible drops Top 3 players make-up ~90% of the markets we serve Mechanical Products Sprinkler Products GLOBAL PIPE TUBE AND CONDUIT North American Market ~$4.7B Atkore Market Leader in the markets we ser
Slide 5: Global Cable & Cable Management Market Position
5 GLOBALCABLE & CABLE MANAGEMENT North American Market ~$1.5B Atkore Market Leader in the markets we serve Leading share position alongside Southwire Top 5 competitors hold 95% of the total market Armored cable conduit market expected to grow 5 – 10% per year over the next 5 years Growth dri
Slide 6: 2013 Year in Review
6 2013 | Year in Review Steel volume up 3%, and copper up 1% for first 9 months Headcount down 60 heads with higher volume; significant talent upgrades at senior leadership and talent infusion throughout the organization Reduced SG&A Costs Negotiated favorable CBAs at 3 major manufacturing f
Slide 7: Sales by Region and Global Footprint
7 NA 94% Europe 3% APAC 3% Sales by Region– FY 2013 Company Locations UK France China Australia New Zealand RI NJ FL NM DE MD TX OK KS NE SD ND MT WY CO UT ID AZ NV WA CA OR KY ME NY PA MI VT NH MA CT VA WV OH IN IL NC TN SC AL MS AR LA MO IA MN WI GA Global Footprint ($mm, Fiscal Year) 2012 2013E R
Slide 8: Electrical Raceway Market and Channel Position
8 Total electrical market is $75B and our current served Raceway market is $6B Currently hold significant position in channel with unique ability to leverage. Electrical Raceway Global Pipe Tube & Conduit Global Cable & Cable Management Cope Allied AFC Unistrut Power Strut EWC KAF- TECH Electric
Slide 9: Forward Looking Focus
9 Forward Looking Focus Atkore Business Units focus on: Driving operational and commercial excellence for effectiveness and productivity Analyzing and fixing our “Go to Market” Driving the Raceway value proposition that leads to a greater share of electrical distribution wallet Atkore func
Slide 10: Portfolio Activity Update
10 Portfolio Activity Update Action Rationale Status 1. RWI Acquisition Expands our fence market share – specifically in barbed tape Completed Oct 2011 2. FlexHead Acquisition Diversification away from commodities – specifically in flexible sprinkler drops Completed Feb 2012 3. Morrisville Divestitu
Slide 11: Recovery Scenarios Over Time – Primary Non-Res Markets
11 Recovery Scenarios Over Time – Primary Non-Res Markets 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2007: 4 2008: 3 2009: 2 20 1 0: 1 2010: 4 2011: 3 2012: 2 20 1 3: 1 2013: 4 2014: 3 2015: 2 2016: 1 Dodge analytics projects acceleration of non-residential starts in second
Slide 12: US Construction Starts - End Market Growth Rates & Peak
12 US Construction Starts - End Market Growth Rates & Peak 31% 22% 20% 18% 17% 16% 16% 13% 13% 6% 4% 0% 5% 10% 15% 20% 25% 30% 35% 63% 82% 65% 74% 75% 70% 68% 63% 89% 86% 63% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Forecast 2014-2016 CAGR (Sq Ft starts) Forecast 2016 Sq Ft starts as a % of peak:
Slide 13: Atkore Market Growth: Growth Prospects in Non-Res Construction
13 Atkore…Market Growth Growth Prospects in Non-Res Construction Global Pipe Tube and Conduit Office and commercial sectors largest end-use markets; mechanical tube acts to lessen dependence on construction; fence framework growth acts as drag 3rd party modeling suggest 6% CAGR for electrical co
Slide 14: Rationale for PVC Acquisition
14 Rationale for PVC Acquisition Compliments Atkore market franchise and enhances Atkore bundling program PVC conduit is a direct substitute for Steel Conduit and Armored cable. But growing at 13% (faster than steel and A/C). PVC is a lower cost solution (material & labor), favored where code pe
Slide 15: Why Heritage/Liberty Plastics
15 Why Heritage/Liberty Plastics PVC market growth potential Atkore’s current regional presence with PVC Broadens our existing PVC offering Complements our core steel conduit offering Together, become a leader in PVC marketplace Strong company performance Highly experienced Heritage Plasti
Slide 16: PVC Pro Forma Footprint
16 PVC Pro Forma Footprint Acquisition of Heritage gives Atkore a significant share in a growth Raceway category. Heritage Plant Allied Plant Atkore
Slide 17: Historical Financial Results
17 1 Figures represent the combined Successor and Predecessor period results. Please see the Company’s SEC filings for detail. 2 Free cash flow calculated as EBITDA less changes in working capital and capital expenditures Historical Financial Results ($mm, Fiscal Year) 2010 20111 2012 2013E Net sale
Slide 18: Strong Cash Flow Characteristics
18 Strong Cash Flow Characteristics Adj. EBITDA Free Cash Flow $90 $41 $87 $64 $0 $50 $100 $150 $200 2010 2011 2012 2013E ($ m m ) $140 $126 $119 $104 $0 $50 $100 $150 $200 2010 2011 2012 2013E ($ m m )
Slide 19: Summary
19 Summary 2013 has been a year of challenges and many successes, but most importantly we have strengthened the business by: Building out the team we need to win Rebalancing the portfolio Building Muscle around financial shared services, customer service, Harvey lean, pricing capability in a
Slide 20: Q&A
20 Q&A
Slide 21: Appendix
21 Appendix
Slide 22: Adjusted EBITDA Reconciliation
22 Adjusted EBITDA Reconciliation LTM Fiscal Year Ended ($mm) June 28, 2013 Sept 28, 2012 Sept 30, 2011 Sept 24, 2010 Net income (loss) ($37) ($8) ($20) ($1) Loss (gain) from discontinued operations - 6 3 1 Income tax (benefit) expense (3) (10) (3) 19 Interest expense, net 47 48 48 48 Depreciation a
Slide 23: Free Cash Flow Calculation
23 Free Cash Flow Calculation ($mm, Fiscal years) 2010 2011 2012 2013E Adjusted EBITDA $140 $126 $119 $104 Changes in: Accounts receivable 5 (24) (25) 13 Prepaid expenses 3 (8) (4) 1 Inventories (78) 2 20 (10) Accounts payable 55 (25) 5 (19) Accrued and other liabilities 10 16 0 (10) Other 0 4 (6) 4
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