Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Investor Presentation (December 2020)
24 slides from Atkore's investor presentation, Dec 3, 2020
Slide 1: Investor Presentation & Company Overview December 2020
1 Investor Presentation & Company Overview December 2020
Slide 2: Cautionary Statements
2 Cautionary Statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact included in this presentation are forward-looking statements. For
Slide 3: Atkore: a Compelling Investment
3 A values-based organization with a focus on continuous improvement driven by the Atkore Business System Strong track record of earnings growth, increasing free cash flow and excellent return on capital With a commitment to quality, delivery and value, we produce infrastructure solutions to power a
Slide 4: Our Foundation is the Atkore Business System
4 Our Foundation is the Atkore Business System
Slide 5: Atkore at a Glance
5 Atkore at a Glance 1. See non-GAAP reconciliation in appendix A leading manufacturer of electrical, mechanical, and safety infrastructure solutions 1959 Founded 2016 IPO (NYSE: ATKR) Harvey, IL Headquarters ~3,700 Employees FY 2020 Financial Highlights $ Millions (except per share amounts) FY 2020
Slide 6: FY20 Sales Breakdown by Market
6 FY20 Sales Breakdown by Market Source: Atkore analysis and estimates. 6 11 16 14 20 33 New Repair & Remodel OEM U.S. Residential Construction International Other U.S. Non- Residential Construction Est. % of Atkore FY20 Net Sales By End Market Category Description Includes Commercial & Industrial
Slide 7: Our Products Are All Around You Everyday
7 PVC Electrical Conduit & Fittings Wire Basket Cable Tray & Fittings PVC Trunking Cable Tray, Ladder & Fittings Metal Electrical Conduit Conduit & Cable Fittings Specialty Electrical Conduit: Stainless Steel, PVC-Coated & Aluminum Electrical Prefabrication Flexible Electrical Conduit & Liquidtight
Slide 8: Outstanding Track Record of Growth
8 Outstanding Track Record of Growth 1. See non-GAAP reconciliation in appendix Adjusted EBITDA1, $M Return on Capital1 (ROC), % 164 235 228 272 324 327 FY2016FY2015 FY2017 FY2018 FY2019 FY2020 +15% CAGR 114 140 97 107 175 215 FY2016FY2015 FY2017 FY2019FY2018 FY2020 +13% CAGR 2.7 10.7 12.2 15.4 17.0
Slide 9: Electrical Raceway Segment
9 Quick Facts: Key Brands: Electrical Raceway Segment: Electrical products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet Atkore products are a staple for electrical distributors Comprehensive product portfolio enables solution
Slide 10: Mechanical Products & Solutions Segment
10 Mechanical Products & Solutions Segment: Mechanical products and services that frame, support and secure component parts in a broad range of structures, equipment and systems in electrical, industrial and construction applications Global distribution capabilities for our broad portfolio of Safety
Slide 11: Organic Growth Drivers
11 Organic Growth New Product Innovation Focused Product Categories Global Category Expansion Digital Capabilities & Resources Improving Customer Experience Levers to Drive Organic Growth Recent Example & Highlights Commercialized over 30 new products in the past two years Drove mid-single digit % r
Slide 12: M&A Strategy Focused on Profitable Growth
12 Quick Facts: Spent over $290 million of cash on acquisitions since FY2017 Added over $400 million in profitable revenue through M&A activities since 2012 Exited over $400 million in breakeven proforma revenue since 2012 M&A Strategy Focused on Profitable Growth Successful Track Record of Portfoli
Slide 13: Strong Financial Profile Ready for the Future
13 Target ~2x times for Net Debt to TTM Adjusted EBITDA Debt Structure, $M As of 9/30/20 Cash and Cash Equivalents $284.5 Senior Secured 1st Term Loan Matures 2023 $803.7 Total Debt $803.7 Total Net Debt $519.3 2.9x 2.8x 2.6x 2.2x 2.1x 2.1x 1.9x 1.6x Q4 2020Q4 2019Q3 2019Q1 2019 Q2 2019 Q1 2020 Q2 2
Slide 14: Focused on Environment, Social & Governance
14 Focused on Environment, Social & Governance We seek to utilize sustainable business principles and processes that achieve a balance between profitability and protection of all stakeholders, while reducing our impact on the environment and climate. Our Focus People and Community: We seek to protec
Slide 15: Stable Business Model Supports Future Growth
15 Disciplined Operational Focus Driven by the Atkore Business System Input Cost Management Not a commodity company; proven track record of successfully managing input cost changes and value selling Market Leadership Leading market share in key product categories with a portfolio of must-stock produ
Slide 16: Appendix
A Atkore APPENDIX 16
Slide 17: Segment Information
17 Segment Information Three months ended September 30, 2020 September 30, 2019 (in thousands) Net sales Adjusted EBITDA Adjusted EBITDA Margin Net sales Adjusted EBITDA Adjusted EBITDA Margin Electrical Raceway $ 364,148 $ 92,855 25.5 % $ 373,344 $ 80,000 21.4 % Mechanical Products & Solutions 113,
Slide 18: Adjusted Earnings Per Share Reconciliation
18 Adjusted Earnings Per Share Reconciliation Consolidated Atkore International Group Inc. Three months ended Fiscal Year Ended (in thousands, except per share data) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income $ 54,241 $ 45,997 $ 152,302 $ 139,051 Stock-bas
Slide 19: Net Income to Adjusted EBITDA Reconciliation
19 Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. Three months ended Fiscal Year Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income $ 54,241 $ 45,997 $ 152,302 $ 139,051 Income tax expense 20,584 16,1
Slide 20: Trailing Twelve Month Adjusted EBITDA
20 Trailing Twelve Month Adjusted EBITDA Consolidated Atkore International Group Inc. TTM Three months ended (in thousands) September 30, 2020 September 30, 2020 June 26, 2020 March 27, 2020 December 27, 2019 Net income $ 152,302 $ 54,241 $ 24,078 $ 39,193 $ 34,790 Interest expense, net 40,062 9,457
Slide 21: Net Debt to Total Debt and Leverage Ratio
21 Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. ($ in thousands) September 30, 2020 June 26, 2020 March 27, 2020 December 27, 2019 September 28, 2019 June 28, 2019 March 29, 2019 December 28, 2018 Short-term debt and current maturities of long-term debt $ —
Slide 22: Free Cash Flow Reconciliation
22 Free Cash Flow Reconciliation Consolidated Atkore International Group Inc. Fiscal Year Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 September 30, 2016 September 30, 2015 Net cash provided by operating activities $ 248,762 $ 209,694 $ 145,703 $ 1
Slide 23: Return on Capital Calculation
23 Return on Capital Calculation Consolidated Atkore International Group Inc. Fiscal Year Ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2018 September 30, 2017 September 30, 2016 September 30, 2015 Income (Loss) Before Taxes $ 201,998 $ 184,669 $ 166,352 $ 126,125 $ 86,781
Slide 24: Thank You!
16100 South Lathrop Avenue, Harvey, IL 60426 atkore.com Thank You!
Atkore International Group — Investor Presentation (December 2020) on 6ix