Slide 1: Second Quarter 2020 Earnings Presentation
Second Quarter 2020 Earnings Presentation May 5, 2020
Slide 2: Cautionary Statements
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. Forwa
Slide 3: Q2 2020 Financial Highlights and Business Update
Q2 2020 Financial Highlights and Business Update ▪ Delivered Net Income of $39.2M; up 32.6% versus prior year ▪ Increased Adjusted EBITDA(1) by 12.9%, or $9.9M in year over year improvement Q2 2020 Financial ▪ Grew Adjusted EPS(1) by 19.3% up to $0.99 Highlights ▪ Completed $15.0M in stock repurchas
Slide 4: Example Actions & Updates Related to COVID-19
Example Actions & Updates Related to COVID-19 Employee Health & Safety Business & Operations Management ▪ Stopped all non-essential business travel ▪ Established an Executive Committee task force to manage ▪ Required executive level approval for all visitors to all aspects of the company’s response
Slide 5: Q2 Income Statement Summary
Q2 Income Statement Summary Y/Y Y/Y % Q2 2020 Q2 2019 ($’s in millions) Change Change Net Sales $455.7 $469.3 ($13.7) (2.9%) Operating Income $61.2 $52.5 $8.6 16.4% Net Income $39.2 $29.6 $9.6 32.6% Adjusted EBITDA(1) $87.0 $77.1 $9.9 12.9% Adjusted EBITDA Margin(2) 19.1% 16.4% +270 bps - Net Income
Slide 6: Consolidated Atkore Q2 2020 Bridges
Consolidated Atkore Q2 2020 Bridges Q2 Net Sales Bridge Net Sales Growth Volume/Mix (0.8%) $469M $11 $456M $4 Price (4.0%) $1 $19 Acquisitions/Divestitures +2.3% FX/Other (0.4%) Total (2.9%) 2019 Volume/Mix Price M&A FX/Other 2020 Q2 Adjusted EBITDA Bridge Highlights $10 $1 $3 $87M ▪ Drove $9.9M of
Slide 7: Electrical Raceway Q2 Highlights
Electrical Raceway Q2 Highlights ▪ Adjusted EBITDA increased $11.6M, and Q2 Q2 Y/Y adjusted EBITDA margins increased 2020 2019 Change ($’s in millions) 410 bps to 23.2% Net Sales $339.7 $353.5 (3.9%) ▪ Volume declines in armored cable and International projects Adjusted EBITDA $79.0 $67.4 17.2% ▪ Co
Slide 8: Mechanical Products & Solutions Q2 Highlights
Mechanical Products & Solutions Q2 Highlights ▪ Strong volume growth of 8.5% led by Q2 Q2 Y/Y continued large renewable energy projects 2020 2019 Change ($’s in millions) and solid execution across the portfolio Net Sales $116.6 $116.2 0.4% ▪ Adjusted EBITDA margins in Q2 were 13.8% and in-line with
Slide 9: Key Metrics & Liquidity Review
Key Metrics & Liquidity Review Metrics Liquidity Review ($’s in millions) 3/27/2020 Cash and cash equivalents $137.2 ▪ Senior secured term loan of $845.7M (net of deferred financing costs) due in December 2023 Total Debt $845.7 o No scheduled principal payments prior to maturity Net Debt $708.5 ▪ As
Slide 10: Cash and Leverage Ratio Trends
Cash and Leverage Ratio Trends +$85.7M vs. Prior Year 164.1 Cash Review 137.2 123.4 ▪ Annually, Q2 cash balance is 100.7 impacted by dual interest Cash & Cash 75.9 payments and dual tax Equivalents, payments that occur during $M 51.5 the period ▪ Other annual items occur during Q2 from a cash outflo
Slide 11: Value Chain & Operating Structure
Value Chain & Operating Structure Value Chain Review ATKORE CUSTOMER OR IN BOUND ATKORE DISTRIBUTION CHANNEL END-USER SUPPLY CHAIN MANUFACTURING NETWORK DISTRIBUTION OVERVIEW & ▪ Key input categories are ▪ 37 manufacturing sites ▪ 28 Atkore operated ▪ Atkore products are a ▪ Electrical, industrial o
Slide 12: Financial Outlook Summary
Financial Outlook Summary Primary Operating Assumption ▪ Net Sales decline of ~30% in Q3 and ~15% in Q4 compared to prior year Outlook Items for Changes to 1H FY2020 Prior FY2020 Consolidated Atkore Actual FY2020 Outlook Note / Comment Outlook Results Favorable / (Unfavorable) Net Sales $903.1M N/A
Slide 13: Thank you for your efforts during this difficult time
Thank you for your efforts during this difficult time Members of the Construction Community Atkore Employees & Sales Agents • Electrical distribution employees; • Multiple emergency and rush production shipments NAED #electricalhero for metal framing and electrical products in order to • Electrician
Slide 14: Questions?
atkore Questions? yf INTERNATIONAL Thank You! ——
Slide 15: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 16: Segment Information
Segment Information Three months ended March 27, 2020 March 29, 2019 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 339,705 $ 78,954 23.2 % $ 353,514 $ 67,375 19.1 % Mechanical Products & Solutions 116,649 16,144
Slide 17: Adjusted Earnings Per Share Reconciliation
Adjusted Earnings Per Share Reconciliation Consolidated Atkore International Group Inc. Three months ended March 27, March 29, (in thousands, except per share data) 2020 2019 Net income $ 39,193 $ 29,555 Stock-based compensation 4,523 1,834 Intangible asset amortization 8,071 8,196 Other (a) (1,503)
Slide 18: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. Three months ended (in thousands) March 27, 2020 March 29, 2019 Net income $ 39,193 $ 29,555 Interest expense, net 10,564 13,328 Income tax expense 13,100 10,253 Depreciation and amortization 18,478 18,280 Rest
Slide 19: Trailing Twelve Month Adjusted EBITDA Reconciliation
Trailing Twelve Month Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. TTM Three months ended March 27, March 27, December September June 28, (in thousands) 2020 2020 27, 2019 30, 2019 2019 Net income $ 156,530 $ 39,193 $ 34,790 $ 45,997 $ 36,550 Interest expense, net 46,1
Slide 20: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. March 27, December September June 28, March 29, December ($ in thousands) 2020 27, 2019 30, 2019 2019 2019 28, 2018 Short-term debt and current maturities of long-term debt $ — $ — $ — $ — $ — $ 26,561 Long-term d
Slide 21: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore International Group Inc. Six months ended (in thousands) March 27, 2020 March 29, 2019 Net cash provided by operating activities $ 49,284 $ 42,789 Capital Expenditures (17,139) (14,712) Free Cash Flow $ 32,145 $ 28,077 21