Atkore Inc. · NYSE:ATKR
Atkore — Q4 2018 Earnings Presentation
16 slides from Atkore's earnings presentation, Nov 28, 2018
Slide 1: Fourth Quarter and FY 2018 Earnings Presentation
Fourth Quarter and FY 2018 Earnings Presentation November 28, 2018
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: FY 2018 Highlights
FY 2018 Highlights Year ended September 30 Net Income of $136.6M and Diluted Y/Y 2018 2017 Change Earnings per share of $2.48 were up 61% ($’s in millions) and 95% year over year, respectively Net Sales $1,835.1 $1,503.9 +22.0% Repurchased ~19 million shares for ~$412 million Net Income $136.6 $84.6
Slide 4: Consolidated Atkore Q4 2018 Financial Summary
Consolidated Atkore Q4 2018 Financial Summary Q4 Q4 Net Sales Growth Y/Y ($’s in millions) 2018 2017 Change Organic Growth +15.6% Acquisitions/Divestitures +5.6% Net Sales $477.6 $395.8 +20.7% FX (0.5%) Net Income $32.7 $20.9 +56.5% Total +20.7% Adjusted EBITDA(1) $71.1 $59.6 19.3% Net Income Margin
Slide 5: Consolidated Atkore Q4 2018 Highlights
Consolidated Atkore Q4 2018 Highlights Q4 Net Sales Bridge Delivered double digit growth in Net $22 $2 $478M sales, Adjusted EBITDA, and EPS $63 $1 $396M Organic net sales up 16%; Industrial volumes continued to be strong with some short-term Electrical channel destocking 2017 Volume Price / Mix M&A
Slide 6: Electrical Raceway Q4 Highlights
Electrical Raceway Q4 Highlights Adjusted EBITDA margin of 19.2% in an Q4 Q4 Y/Y inflationary environment 2018 2017 Change ($’s in millions) Net Sales $355.0 $293.1 21.1% Volume up ~1% for full year 2018 Adjusted EBITDA $68.2 $50.9 34.1% Some Electrical channel destocking Adjusted EBITDA 19.2% 17.4%
Slide 7: Mechanical Products & Solutions Q4 Highlights
Mechanical Products & Solutions Q4 Highlights Q4 Q4 Y/Y Continued volume growth in Industrial verticals ($’s in millions) 2018 2017 Change and pricing actions gaining traction vs. inflation Net Sales $123.0 $103.0 19.5% Significant increase in price realization; ~70% of Adjusted EBITDA $11.8 $15.1 (
Slide 8: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Leverage Ratio (1) ($mm) 9/30/2018 Cash and cash equivalents $126.7 3.4 Total Debt $904.2 Net Debt $777.6 3.1 YTD Net cash from operating $145.7 activities 2.9 YTD Adjusted EBITDA(1) $271.5 Leverage Ratio(1) Total debt / TTM Adjusted EBITDA(1) Q2 2018
Slide 9: What We Expect from the Market
What We Expect from the Market Key Market Influences by Segment Market Growth Mechanical Products Electrical Raceway 2019 Expectations & Solutions Non - Residential +2 to 4% Construction Industrial +4 to 5% Residential flat to +3% Construction Modest Volume Growth Expected in 2019 = Atkore Product D
Slide 10: 2019 Financial Outlook Summary
2019 Financial Outlook Summary Q1 2019 FY 2019 Electrical Raceway Volume Flat +2 to 4% Segment Adjusted EBITDA* $67 - $72M $265 - $285M Volume +2% +4 to 5% Mechanical Products & Solutions Segment Adjusted EBITDA* $8 - $10M $55 - $58M Adjusted EBITDA* $67 - $72M $285 - $305M Adjusted EPS* $0.65 - $0.
Slide 11: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 12: 2018 Bridges
2018 Bridges Year ended September 30 FY 2018 Net Sales Bridge Sales Growth $5 $1,835M Organic Growth +14.4% $109 $166 Acquisitions +7.9% Acquisitions less Divestures (0.7%) Flexhead Sale $52 $1,504M FX +0.4% Inflation Strong Pass Industrial Through Total +22.0% Markets 2017 Volume Price / Mix M&A FX
Slide 13: Segment Information
Segment Information Fiscal year ended September 30, 2018 September 30, 2017 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 1,366,611 $ 255,260 18.7 % $ 1,094,783 $ 189,351 17.3 % MP&S 470,153 $ 51,339 10.9 % 410,5
Slide 14: Adjusted earnings per share reconciliation
Adjusted earnings per share reconciliation Consolidated Atkore International Group Inc. Three Months Ended Fiscal Year Ended September 30, September 30, September 30, September 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income $ 32,699 $ 20,857 $ 136,645 $ 84,639 Stock-based c
Slide 15: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. Three Months Ended Fiscal Year Ended (in thousands) September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Net income $ 32,699 $ 20,857 $ 136,645 $ 84,639 Income tax expense 1,447 12,173 29
Slide 16: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. (in thousands) September 30, 2018 June 29, 2018 March 30, 2018 December 29, 2017 Short-term debt and current maturities of long- 26,561 7,630 7,653 4,215 term debt Long-term debt 877,686 898,509 900,556 527,802 To