Luxfer Holdings PLC · NYSE:LXFR
Luxfer — Q3 2017 Earnings Presentation
18 slides from Luxfer's earnings presentation, November 2017
Slide 1: Third-quarter 2017 Conference Call
Innovative solutions in material technology Third-quarter 2017 Conference Call LUXFER GROUP ©©2017 2017Luxfer LuxferHoldings HoldingsPLC, PLC,All AllRights RightsReserved Reserved 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. Examples of such forward-looking statements include, but are not limited to: (i) statements regarding the Group’s results of operations and financial condition, (ii) statements of plans, objectives or goals of the Grou
Slide 3: Executive Summary
EXECUTIVE SUMMARY • Q3 adjusted diluted EPS of $0.28 is higher vs. last year’s Q3 EPS of $0.19. • Cylinders revenue flat. • Increases from FX impact were offset by negative trading variances. • Productivity challenges in Superform business impacted trading profit. • Elektron revenue and trading prof
Slide 4: Q3 2017 Luxfer Performance
Q3 2017 LUXFER PERFORMANCE Sales Trading profit Performance highlights • Elektron sales showed strong recovery, with higher sales of our proprietary SoluMag® alloy and an increase in FRH used in MRE orders. • Sales also improved for other defense‐related products. • Cylinder sales weakness in altern
Slide 5: Q3 2017 Gas Cylinders Performance
Q3 2017 GAS CYLINDERS PERFORMANCE Sales Trading profit Performance highlights • Demand for aluminum cylinders improved with volumes increasing over Q3 2016. • Stronger European medical cylinder sales offset lower AF and SCBA cylinder shipments. • Decline in trading profit due to productivity challen
Slide 6: Q3 2017 Elektron Performance
Q3 2017 ELEKTRON PERFORMANCE Sales Trading profit Performance highlights • Sales of our proprietary SoluMag® alloy continue to grow with broadening product line. • Defense stronger with large orders delivered for aircraft decoy flares. • Chemical catalysis sales were higher because the timing of a l
Slide 7: Exchange of ADSs into Ordinary Shares
EXCHANGE OF ADSs INTO ORDINARY SHARES • One-for-one exchange: One ADS = One Ordinary Share. • For shareholders who hold ADSs in a bank or brokerage account, no further action required (exchange will be automatic). • Will allow shareholders to directly own and trade ordinary shares on the NYSE. • Key
Slide 8: Key Income Statement Metrics
KEY INCOME STATEMENT METRICS vs Prior Year $ in millions Q3 2017 Q3 2016 ∆ ∆% Revenue 115.2 98.9 16.3 16.5% Adjusted EBITDA* 16.7 12.0 4.7 39.2% Trading Profit (adjusted operating profit)* 11.3 7.3 4.0 54.8% Restructuring and other costs (2.0) (1.5) (0.5) 33.3% Operating Profit 9.3 5.8 3.5 60.3% Net
Slide 9: Key Balance Sheet and Cash Flow Metrics
KEY BALANCE SHEET AND CASH FLOW METRICS $ in millions Q3 2017 Q3 2016 Q4 2016 Bank and other loans (120.6) (137.5) (121.0) Cash and cash equivalents 19.2 32.3 13.6 Net debt (101.4) (105.2) (107.4) Inventories, net 89.0 91.0 82.5 Accounts receivable, net 78.7 64.5 57.6 Accounts payable (62.9) (63.1)
Slide 10: Full-Year 2017 Luxfer Outlook
FULL-YEAR 2017 LUXFER OUTLOOK • Guidance: • The financial results for Q3 2017 showed substantial improvement from Q3 2016. • Elektron’s performance improved significantly as defense markets recovered. • Exchange rates continuing to benefit profit. • We expect higher full-year 2017 adjusted earnings,
Slide 11: Questions?
QUESTIONS? Thank you. LUXFER GROUP © 2017 Luxfer Holdings PLC, All Rights Reserved LUXFER GROUP 11
Slide 12: Appendices
APPENDICES Summary financial statements and reconciliation of non-GAAP measures LUXFER GROUP © 2017 Luxfer Holdings PLC, All Rights Reserved LUXFER GROUP 12
Slide 13: Summary Income Statement
SUMMARY INCOME STATEMENT 2017 2017 2016 2016 Variance Q3 Variance YTD $M Q3 YTD Q3 YTD $M % $M % REVENUE 115.2 325.2 98.9 318.7 16.3 16.5% 6.5 2.0% Cost of sales (85.7) (243.7) (77.2) (243.9) Gross profit 29.5 81.5 21.7 74.8 7.8 35.9% 6.7 9.0% Gross margin % 25.6% 25.1% 21.9% 23.5% Distribution cost
Slide 14: Balance Sheet Analysis
BALANCE SHEET ANALYSIS December 31 Shareholder Pension FX September 30 2016 Trading Returns Movements Translation 2017 $M $M $M $M $M $M Property, plant and equipment 127.9 (4.7) - - 3.4 126.6 Intangible assets 80.6 (2.3) - - 4.8 83.1 Investments 10.0 (2.5) - - 0.2 7.7 Deferred income tax assets 16.
Slide 15: Cash Flow
CASH FLOW 2017 2017 2016 2016 Q3 YTD Q3 YTD $M $M $M $M Operating profit 9.3 26.8 5.8 30.5 Depreciation and amortization 4.9 14.1 4.6 13.9 Profit on sale of redundant site - (0.4) - (2.1) Share-based compensation charges net of cash settlement 0.3 0.8 0.5 1.1 Non-cash restructuring charges - 2.2 - -
Slide 16: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES 2017 2017 2016 2016 Q3 YTD Q3 YTD $M $M $M $M Net income for the period - as reported 4.7 13.8 3.3 18.7 Accounting charges relating to acquisitions and disposals of businesses: Unwind of discount on deferred contingent consideration from acquisitions - 0.1 0.1 0.3
Slide 17: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ` ` 2017 2017 2016 2016 Q3 YTD Q3 YTD Gas Cylinders Adjusted EBITDA $M 4.3 14.7 4.9 15.3 Other s ha re-ba s ed compens a tion cha rges (0.2) (0.5) (0.1) (0.6) Depreci a tion a nd a mortiza tion (2.0) (5.6) (1.8) (5.4) Trading profit $M 2.1 8.6 3.0 9.3 Elektron Adj
Slide 18: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES 2015 2016 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 $M $M $M $M $M $M $M $M $M $M $M $M $M Trading profit - per income statement 42.3 35.3 10.5 11.7 10.6 9.5 11.8 11.0 7.3 5.2 10.5 10.1 11.3 Effective tax rate - per in