Atkore Inc. · NYSE:ATKR
Atkore — Q1 2024 Earnings Presentation
21 slides from Atkore's earnings presentation, Feb 1, 2024
Slide 1: First Quarter 2024 Earnings Presentation and Business Update
First Quarter 2024 Earnings Presentation and Business Update February 1, 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: Strong Start to FY 2024
Strong Start to FY 2024 Net Sales Net Income Adjusted EBITDA1 Diluted EPS Adjusted Diluted EPS1 $M $M $M $/share $/share -4% -14% -11% -20% -19% 841 834 798 205 293 4.32 4.20 4.58 4.61 173 264 4.12 3.61 138 214 511 447 85 137 1.75 1.88 78 35 0.71 0.94 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1
Slide 4: Q1 Income Statement Summary
Q1 Income Statement Summary Y/Y Y/Y % ($’s in millions) Q1 2024 Q1 2023 Change Change Net Sales $798.5 $833.8 ($35.3) (4.2%) Operating Income $175.5 $231.6 ($56.1) (24.2%) Net Income $138.4 $173.5 ($35.1) (20.2%) Adjusted EBITDA1 $213.5 $263.8 ($50.3) (19.1%) Adjusted EBITDA Margin2 26.7% 31.6% (490
Slide 5: Consolidated Atkore Bridges
Consolidated Atkore Bridges Q1 Net Sales Bridge $106 Net Sales % Change 2024 $834M $3 $798M Volume/Mix +13% $130 $15 Price (16%) Solar Credit (2%) Other1 1% Total (4%) 2023 Volume/Mix Price Solar Credit Other1 2024 Adjusted EBITDA Bridge2 Adjusted Diluted EPS Bridge2 $52 $4.61 $0.29 $0.11 $4.12 $264
Slide 6: Key Product Area Trends & Review
Key Product Area Trends & Review FY 2024 YTD Net Sales by Volume/Mix % Product Area Review & Key Product Area1 FY 2024 YTD vs. Key Comments FY 2023 YTD Moderate year-over-year comparisons for PVC related products after channel Plastic Pipe, inventory destocking in 1H 2023; solid growth expectations
Slide 7: Segment Results
Segment Results Electrical Safety & Infrastructure Y/Y ($’s in millions) Y/Y ($’s in millions) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Change Change Net Sales $593.7 $638.7 (7.1%) Net Sales $205.1 $195.3 5.1% Adjusted EBITDA $204.4 $243.8 (16.2%) Adjusted EBITDA $19.5 $33.4 (41.6%) Adjusted EBITDA Margin 34
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 $158 $44 $388M $400 $381M $373 $96 $25 $325 FY23 YE Cash Flow Capital Stock Net Other FY24 YTD
Slide 9: FY 2024 Capital Deployment Update
FY 2024 Capital Deployment Update Atkore’s Board of Directors Declares First Quarterly Dividend Payment of $0.32 per share First dividend payment: First quarterly cash distribution of $0.32 per share to be paid on March 15, 2024, to stockholders of record on February 27, 2024 Strong past performance
Slide 10: Updated FY 2024 Outlook
Updated FY 2024 Outlook Increasing FY 2024 Outlook for Adjusted Diluted EPS. Continue to expect low double digit percentage volume growth for FY 2024 driven by growth across all key product areas. Outlook Summary Outlook Items for Q2 2024 Outlook FY 2024 Outlook Updates to FY 2024 Outlook Consolidat
Slide 11: Buildings Need Electricity, Our Portfolio Delivers
Buildings Need Electricity, Our Portfolio Delivers Portfolio of Electrical Infrastructure products support a broad range of construction projects and are installed at various stages throughout a project’s lifecycle. Meeting the growing Industrial Institutional Utility Commercial Transportation Resid
Slide 12: Product Portfolio Aligned to Strong Growth Trends
Product Portfolio Aligned to Strong Growth Trends Atkore’s business model is designed to succeed through fluctuations in various category end market demand, and our product portfolio is well-positioned with the projected growth in several end-markets. Average Atkore Product Use & Anticipated Growth
Slide 13: Appendix
Appendix © Atkore 13
Slide 14: Segment Information
Segment Information Three months ended December 29, 2023 December 30, 2022 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical $ 593,661 $ 204,360 34.4 % $ 638,705 $ 243,836 38.2 % Safety & Infrastructure 205,127 19,512 9.5 % 19
Slide 15: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Three months ended December December December December December (in thousands, except per share data) 29, 2023 30, 2022 24, 2021 25, 2020 27, 2019 Net income $ 138,381 $ 173,492 $ 204,843 $ 85,066 $
Slide 16: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended December December December December December (in thousands) 29, 2023 30, 2022 24, 2021 25, 2020 27, 2019 Net income $ 138,381 $ 173,492 $ 204,843 $ 85,066 $ 34,790 Interest expense, net 7,793 9,488 6,918 8,254 1
Slide 17: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore Inc. TTM Three months ended December December September June 30, March 31, (in thousands) 29, 2023 29, 2023 30, 2023 2023 2023 Net income $ 654,788 $ 138,381 $ 140,925 $ 201,288 $ 174,194 Interest expense, net 33,538 7,793 8,588 8,682 8,475 I
Slide 18: Total Debt to Net Debt
Total Debt to Net Debt Consolidated Atkore Inc. December September June 30, March 31, December September (in thousands) 29, 2023 30, 2023 2023 2023 30, 2022 30, 2022 Long-term debt $ 763,225 $ 762,687 $ 762,149 $ 761,612 $ 761,074 $ 760,537 Total debt 763,225 762,687 762,149 761,612 761,074 760,537
Slide 19: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore Inc. Three months ended December December (in thousands) 29, 2023 30, 2022 Net cash provided by operating activities $ 158,106 $ 198,851 Capital expenditures (44,331) (35,006) Free cash flow $ 113,775 $ 163,845 © Atkore 19
Slide 20: 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 21: atkore.com
A Atkore A Atkore atkore.com BUILDING BETTER TOGETHER 21